Mercer International Inc. Announces Plans to Issue $225 Million of Senior Notes in Private Offering and the Conditional Redemption of All Outstanding 7.000% Senior Notes Due 2019
January 30, 2017 at 12:39 pm
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Mercer International Inc. (the "company") announced that it intends to offer for sale $225 million in aggregate principal amount of senior notes due 2024. The net proceeds of the offering, together with cash on hand, will be used to redeem all of the company’s currently outstanding 7.000% senior notes due 2019. In connection with the proposed redemption of 2019 notes, the company has issued a conditional notice of redemption to redeem the 2019 notes, of which an aggregate principal amount of $227 million is currently outstanding, at $1,035.00 per $1,000.00 of principal amount redeemed, plus accrued and unpaid interest to, but not including, the redemption date. The redemption date is March 1, 2017 and redemption is conditioned upon completion of the offering and the company's deposit with the paying agent of sufficient funds to pay the redemption price. The 2024 notes will be offered and sold to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended, and outside the United States to non-U.S. persons in reliance on Regulation S under the Securities Act. The 2024 notes have not been registered under the Securities Act, or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
Mercer International Inc. is a global forest products company. The Companyâs segments include Pulp and Wood Products. The Company's four pulp mills and its 50% interest in the Cariboo pulp mill are aggregated into the pulp segment. Its wood segment includes the Friesau sawmill, the Torgau facility, and the Mercer Mass Timber facility. It owns a cross-laminated timber (CLT) facility located in Spokane, Washington called Mercer Mass Timber LLC. It produces electrical and thermal energy from biomass byproducts. Its products include pulp products, timber products, mass timber, green energy, bio extractives and biomaterials, biofuels, pallets, wood and transport services, and logistic services. Its operations include Mercer Celgar, Mercer Forestry Services, Mercer Holz, Mercer Logistik, Mercer Mass Timber, Mercer Peace River, Cariboo Pulp & Paper, Mercer Timber Products and Santanol. It also owns production facilities located in Conway, Arkansas and in Penticton, British Columbia, Canada.
Mercer International Inc. Announces Plans to Issue $225 Million of Senior Notes in Private Offering and the Conditional Redemption of All Outstanding 7.000% Senior Notes Due 2019