Mercer to issue $22.01 million new convertibles for $21.73 million tendered 8.5% convertibles

By Jennifer Chiou

New York, Jan. 22 - Mercer International Inc. announced that it received tenders for $21.73 million of notes in its completed exchange offer for up to $23,625,000 of its $24 million of 8.5% convertible senior subordinated notes due October 2010.

The exchange ended at 5 p.m. ET on Jan. 21. It began on Dec. 18.

On Dec. 11, the company said it issued $43,811,653 of new 8.5% convertible senior subordinated notes due Jan. 15, 2012 in exchange for $43.25 million of the existing 8.5% convertibles.

As a result of the tenders, Mercer will issue $22,012,490 more of the new convertibles. Settlement is slated for Tuesday.

The company offered an equal amount of the new convertibles plus accrued interest to Dec. 9. The new notes will accrue interest from Dec. 10 onwards.

The new convertibles have substantially the same terms as the old convertibles other than their maturity date and conversion price, which is $3.30 per share.

Georgeson Inc. was the information agent (800 267-4403).

Mercer is a pulp manufacturing company based in Vancouver, B.C., with U.S. headquarters in Seattle.

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