Mercer International Inc. Completes Private Offering of $875,000,000 of 2029 Senior Notes, Settlement of Tender Offer of 2024 Senior Notes and Redemption of 2025 Senior Notes
January 26, 2021 at 08:45 pm IST
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Mercer International Inc. announced that it has completed its previously announced private offering of $875.0 million aggregate principal amount of 5.125% senior notes due February 1, 2029. The Company also announces the settlement of its previously announced cash tender offer with respect to its existing 6.500% Senior Notes due 2024 and completion of its previously announced redemption of its existing 7.375% Senior Notes due 2025. The 2029 Notes were issued at a price of 100.000% of their principal amount. The net proceeds of the offering will be used by the the Company to refinance all $250.0 million in aggregate principal amount of its 6.500% Senior Notes due 2024pursuant to the Tender Offer, and subsequent redemption of, its 2024 Notes, to complete the redemption of the 2025 Notes and for general corporate purposes. Under the Tender Offer, $100,069,000 of the $250.0 million aggregate principal amount of 2024 Notes have been validly tendered and not withdrawn. Today, the Company accepted for purchase all such tendered 2024 Notes and will pay to the holders thereof $1,018.35 per $1,000 principal amount of the 2024 Notes that were accepted for purchase plus accrued and unpaid interest on the notes from the last interest payment date up to, but not including, the settlement date. The remaining aggregate principal amount of 2024 Notes that were not accepted for purchase under the Tender Offer will be redeemed by the Company on February 13, 2021 at a redemption price of $1,016.25 per $1,000 principal amount of such 2024 Notes pursuant to the redemption for such notes previously announced by the Company. Pursuant to the previously announced redemption, the Company will redeem all $550.0 million aggregate principal amount outstanding of 2025 Notes today at $1,036.88 per $1,000 of principal amount redeemed, plus accrued and unpaid interest to, but not including the redemption date.
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. Completes Private Offering of $875,000,000 of 2029 Senior Notes, Settlement of Tender Offer of 2024 Senior Notes and Redemption of 2025 Senior Notes