Mercer International Inc. Announces Upsizing and Pricing of Private Offering of Senior Notes and the Conditional Full Redemption of its Outstanding 7.375% Senior Notes Due 2025
January 14, 2021 at 06:30 pm EST
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Mercer International Inc. announced the upsizing and pricing of its private offering of $875 million in aggregate principal amount of 5.125% senior notes due February 1, 2029. The size of the offering was increased from the previously announced offering of $500 million aggregate principal amount of 2029 Notes to $875 million aggregate principal amount of 2029 Notes. The 2029 Notes are being issued at a price of 100% of their principal amount. The net proceeds of the offering will be used by the Company to refinance all $250 million in aggregate principal amount of its 6.500% Senior Notes due 2024 pursuant to its previously announced tender offer for, or any subsequent redemption of, its 2024 Notes, to redeem all of its 7.375% Senior Notes due 2025 and for general corporate purposes. In connection with the proposed conditional redemption of the 2025 Notes, the Company has issued a conditional notice of redemption to redeem in full all $550 million in aggregate principal amount of the 2025 Notes at $1,036.88 per $1,000.00 of principal amount redeemed, plus accrued and unpaid interest to, but not including, the redemption date. The redemption date is January 26, 2021 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 offering of the 2029 Notes is expected to close on or around January 26, 2021, subject to the satisfaction of customary closing conditions. The 2029 Notes are being 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.
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 Upsizing and Pricing of Private Offering of Senior Notes and the Conditional Full Redemption of its Outstanding 7.375% Senior Notes Due 2025