Mercer accepts $100.07 million tenders for 6½% notes due 2024

By Taylor Fox

New York, Jan. 26 – Mercer International Inc. received and accepted $100,069,000 of tenders under its cash tender offer for any and all of its $250 million outstanding 6½% senior notes due 2024 (Cusip: 588056AU5), according to a news release.

The offer expired at 5 p.m. ET Jan. 21 and settled on Jan. 26.

Holders who tendered notes received $1,018.35 per $1,000 principal amount, plus interest.

Mercer plans to redeem the notes that were not purchased under the tender offer on Feb. 13 at a price of $1,016.25 per $1,000 of notes plus interest.

As previously reported, the tender offer was not subject to a minimum tender condition but was conditioned on the company raising proceeds from one or more new debt financings in an amount sufficient to pay for all notes accepted for purchase in the offer.

On Monday the company announced it completed its offering of $875 million of 5 1/8% senior notes due 2029. Proceeds from the new notes will be used to fund the tender offer and the subsequent redemption.

Credit Suisse Securities (USA) LLC (212 325-6340, 800 820-1653) was the dealer manager, and D.F. King & Co., Inc. (212 269-5550, 866 530-8635; mercer@dfking.com) was the information and tender agent.

The pulp producer is based in Vancouver, B.C.

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