Mercer International Inc. Announces Pricing of Private Add-On Offering of Senior Notes
Mercer International (Nasdaq: MERC) has priced a private offering of $200.0 million in 12.875% senior notes due October 1, 2028, issued at 103.000% of principal amount. The proceeds, combined with cash on hand, will be used to redeem $300.0 million of 5.500% senior notes due 2026. The Additional Notes will share terms with existing notes issued in September 2023, offering a yield to worst of 11.624%. The offering, targeted at qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S, is expected to close around October 30, 2024.
Mercer International (Nasdaq: MERC) ha fissato un'offerta privata di 200,0 milioni di dollari in obbligazioni senior al 12,875% con scadenza il 1° ottobre 2028, emesse al 103,000% del valore nominale. I proventi, insieme ai fondi disponibili, saranno utilizzati per rimborsare 300,0 milioni di dollari di obbligazioni senior al 5,500% in scadenza nel 2026. Le obbligazioni aggiuntive condivideranno le condizioni con le obbligazioni esistenti emesse a settembre 2023, offrendo un rendimento minimo pari all'11,624%. L'offerta, destinata a investitori istituzionali qualificati secondo la Regola 144A e a persone non statunitensi secondo il Regolamento S, dovrebbe chiudersi intorno al 30 ottobre 2024.
Mercer International (Nasdaq: MERC) ha cotizado una oferta privada de 200.0 millones de dólares en notas senior al 12.875% que vencen el 1 de octubre de 2028, emitidas al 103.000% del monto principal. Los ingresos, junto con el efectivo disponible, se utilizarán para redimir 300.0 millones de dólares de notas senior al 5.500% con vencimiento en 2026. Las Notas Adicionales compartirán términos con las notas existentes emitidas en septiembre de 2023, ofreciendo un rendimiento a peor del 11.624%. La oferta, dirigida a compradores institucionales calificados bajo la Regla 144A y a personas no estadounidenses bajo la Regulación S, se espera que cierre alrededor del 30 de octubre de 2024.
머서 인터내셔널 (Nasdaq: MERC)는 2억 달러 규모의 12.875% 만기 2028년 10월 1일의 선순위 노트를 103.000%의 원금으로 발행하는 사모 제안을 가격을 정했습니다. 그 수익금은 현금과 함께 2026년 만기 5.500%의 선순위 노트 3억 달러를 상환하는 데 사용될 예정입니다. 추가 노트는 2023년 9월에 발행된 기존 노트와 동일한 조건을 공유하며, 최소 수익률은 11.624%입니다. 이 제안은 Rule 144A에 따른 자격을 갖춘 기관 투자자와 Regulation S에 따른 비미국인에게 제공되며, 2024년 10월 30일 경에 마감될 것으로 예상됩니다.
Mercer International (Nasdaq: MERC) a fixé une offre privée de 200,0 millions de dollars en obligations senior à 12,875% arrivant à échéance le 1er octobre 2028, émises à 103,000% du montant nominal. Les produits, combinés aux liquidités disponibles, seront utilisés pour racheter 300,0 millions de dollars d'obligations senior à 5,500% arrivant à échéance en 2026. Les Notes Supplémentaires partageront les conditions des notes existantes émises en septembre 2023, offrant un rendement minimal de 11,624%. L'offre, destinée aux acheteurs institutionnels qualifiés en vertu de la règle 144A et aux personnes non américaines en vertu de la réglementation S, devrait se conclure autour du 30 octobre 2024.
Mercer International (Nasdaq: MERC) hat eine private Platzierung von 200,0 Millionen US-Dollar in 12,875% Senior Notes mit Fälligkeit am 1. Oktober 2028 zu einem Preis von 103,000% des Nennwerts festgelegt. Die Erlöse, zusammen mit liquiden Mitteln, werden verwendet, um 300,0 Millionen US-Dollar an 5,500% Senior Notes mit Fälligkeit 2026 zurückzuzahlen. Die zusätzlichen Anleihen werden die Bedingungen der bestehenden Anleihen widerspiegeln, die im September 2023 ausgegeben wurden, und bieten eine Mindestverzinsung von 11,624%. Das Angebot, das sich an qualifizierte Institutionelle Käufer gemäß Regel 144A und an nicht-US-Personen gemäß der Regulierung S richtet, wird voraussichtlich um den 30. Oktober 2024 abgeschlossen sein.
- Successful pricing of $200 million senior notes offering
- Strategic debt refinancing to address upcoming 2026 maturity
- Higher interest rate on new notes (12.875%) compared to existing notes (5.500%)
- Additional debt cost with notes priced at 103% of principal amount
- Net reduction in cash position due to partial redemption funding from cash on hand
Insights
This debt refinancing signals significant changes in MERC's capital structure. The company is issuing
NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) -- Mercer International Inc. (Nasdaq: MERC) (the "Company") today announced the pricing of its private offering of
The Additional Notes are being issued at a price of
The Additional Notes are being offered as additional notes under an existing indenture, dated as of September 21, 2023, pursuant to which the Company previously issued
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 offered and sold in reliance on Rule 144A will be issued and maintained under the same CUSIP as the Existing Notes. Any Additional Notes offered and sold in offshore transactions in reliance on Regulation S will be issued and maintained under a separate CUSIP number during a 40-day distribution compliance period commencing on the issue date of the Additional Notes. Following the completion of the 40-day distribution compliance period, such Additional Notes will be maintained under the same CUSIP as the Existing Notes. The offering of the Additional Notes is expected to close on or around October 30, 2024, subject to the satisfaction of customary closing conditions.
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, the United States and Canada with consolidated annual production capacity of 2.1 million tonnes of pulp, 960 million board feet of lumber, 210,000 cubic meters of cross-laminated timber, 45,000 cubic meters of glulam, 17 million pallets and 230,000 metric tonnes of biofuels.
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, the intended use of proceeds and the completion of the redemption of the 2026 Senior 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 completion of the redemption of the 2026 Senior 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:
William D. McCartney
Chairman of the Board
(604) 684-1099
Juan Carlos Bueno
Chief Executive Officer
(604) 684-1099
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