Mercer International Inc. Announces Pricing of Private Add-On Offering of Senior Notes
NEW YORK, Sept. 19, 2019 (GLOBE NEWSWIRE) -- Mercer International Inc. (Nasdaq: MERC) (the "Company") today announced the pricing of its previously announced offering of $200.0 million aggregate principal amount of 7.375% senior notes due January 15, 2025 (the "Additional Notes"). The Additional Notes will be issued at 102.75% of their principal amount, plus accrued interest from July 15, 2019, for a yield to worst of 6.435%.
The net proceeds of the offering will be used to redeem $100.0 million in principal amount of the Company's 7.750% Senior Notes due 2022 (the "2022 Notes") and for general corporate purposes, including discretionary capital projects at the Company's mills.
The Additional Notes are being offered as additional notes under an existing indenture, dated as of December 7, 2018, pursuant to which the Company previously issued $350.0 million aggregate principal amount of 7.375% senior notes due 2025 (the "Existing Notes"). Other than with respect to the date of issuance, the offering price and initial CUSIP, the Additional Notes will have the same terms as the Existing Notes. Following the completion of a registered exchange offer for the Additional Notes, they will be fungible with any registered Existing Notes and will then trade under the same CUSIP number as such registered Existing Notes. The offering of the Additional Notes is expected to close on or around October 3, 2019, subject to the satisfaction of customary closing conditions.
The Additional Notes are being offered and sold to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States to non-U.S. persons in reliance on Regulation S under the Securities Act.
The Additional 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. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Additional Notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.
Mercer International Inc. is a global forest products company with operations in Germany and Canada with consolidated annual production capacity of 2.2 million tonnes of pulp and 550 million board feet of lumber. To obtain further information on the company, please visit its web site at .
The preceding contains "forward looking statements" within the meaning of federal securities laws and is intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995, including, without limitation, the Company's intentions regarding the consummation of the offering of the Additional Notes and the intended use of proceeds and the completion of the redemption of the 2022 Notes. "Forward looking statements" involve unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. These statements are based on the Company's management's estimates and assumptions with respect to future events, which include uncertainty as to its ability to consummate the offering of the Additional Notes or the redemption of the 2022 Notes, which estimates are believed to be reasonable, though inherently uncertain and difficult to predict. A discussion of factors that could cause actual results to vary is included in the Company's Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission.
| APPROVED BY: Jimmy S.H. Lee Executive Chairman (604) 684-1099 David M. Gandossi, FCPA, FCA Chief Executive Officer (604) 684-1099 |
