Mercer International priced additional notes offering of USD 25 million

Mercer International announced the pricing of its offering of USD 25.0 million aggregate principal amount of 6.500% senior notes due 2024. According to the announcement, the additional notes are being issued at a price of 100% of their principal amount, plus accrued interest, if any, from February 3, 2017. The offering of the additional notes is expected to close on or around March 27, 2017, subject to the satisfaction of customary closing conditions.

The company intends to use the net proceeds from the offering, along with cash on hand, to finance its acquisition of substantially all of the assets comprising a sawmill and bio-mass power plant located near Friesau, Germany and for general working capital purposes.

The additional notes are being offered as additional notes under the indenture, dated as of February 3, 2017, pursuant to which the company previously issued USD 225 million aggregate principal amount of 6.500% senior notes due 2024. The additional notes will have the same CUSIP number as, and are expected to be fully fungible with, rank equally with and form a single series with, the existing notes.

Earlier Mercer International declared a quarterly dividend of USD 0.115 per common share will be paid on April 4, 2017 to all shareholders of record on March 28, 2017. In 4Q2016 the company reported 6.8% decrease of revenues and 6% decrease of Operating EBITDA y-o-y.

About Mercer International Inc:

The company is a global pulp manufacturer. It operates three modern NBSK pulp mills in Germany and Canada with a consolidated annual production capacity of approximately 1.5Mt.

Source: Woodbizforum