Mercer International Inc. Announces Pricing of Private Offering of Senior Notes
December 06 2017 - 7:34PM
Mercer International Inc. (Nasdaq:MERC) (TSX:MERC.U) (the
"Company") today announced the pricing of its previously announced
offering of $300 million aggregate principal amount of 5.500%
senior notes due January 15, 2026 (the "2026 Notes").
The 2026 Notes are being issued at a price of
100% of their principal amount. The net proceeds from the offering
will be used, together with cash on hand, to redeem $300 million in
principal amount of the Company's currently outstanding 7.750%
senior notes due 2022, of which $400 million in aggregate principal
amount of is currently outstanding.
The offering of the 2026 Notes is expected to
close on or around December 20, 2017, subject to the satisfaction
of customary closing conditions.
The 2026 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 2026 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 2026 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.
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 2026 Notes, the intended use of
proceeds and the completion of the partial redemption of existing
senior notes due 2022. "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
2026 Notes or the partial redemption of the existing senior notes
due 2022, 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.
LeeExecutive Chairman(604) 684-1099 David M. Gandossi, FCPA,
FCAChief Executive Officer (604) 684-1099 |
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