Mercer International Inc. Announces Proposed Add-On Offering of $200 Million of Senior Notes Due 2028 in Private Offering and Redemption of 5.500% Senior Notes Due 2026
Mercer International Inc. (Nasdaq: MERC) has announced a proposed add-on offering of $200 million in senior notes due October 1, 2028. These Additional Notes will be issued under an existing indenture from September 21, 2023, which previously issued $200 million in 12.875% senior notes due 2028. The company plans to use the net proceeds, along with cash on hand, to redeem $300 million in principal amount of its outstanding 5.500% senior notes due 2026.
The redemption is scheduled for November 1, 2024, conditional upon completion of the Offering. The Additional Notes will be offered to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S of the Securities Act. These notes have not been registered under the Securities Act and may not be offered or sold in the U.S. without exemption or registration.
Mercer International Inc. (Nasdaq: MERC) ha annunciato un'offerta addizionale proposta di $200 milioni in note senior con scadenza il 1° ottobre 2028. Queste Note Aggiuntive saranno emesse secondo un contratto già esistente dal 21 settembre 2023, che ha precedentemente emesso $200 milioni in note senior al 12,875% con scadenza nel 2028. L'azienda prevede di utilizzare i proventi netti, insieme ai fondi disponibili, per rimborsare $300 milioni di importo principale delle sue note senior esistenti al 5,500% in scadenza nel 2026.
Il rimborso è programmato per il 1° novembre 2024, a condizione che l'offerta venga completata. Le Note Aggiuntive saranno offerte a compratori istituzionali qualificati in base alla Regola 144A e a persone non statunitensi ai sensi della Regolamento S della Securities Act. Queste note non sono state registrate ai sensi della Securities Act e non possono essere offerte o vendute negli Stati Uniti senza esenzione o registrazione.
Mercer International Inc. (Nasdaq: MERC) ha anunciado una oferta adicional propuesta de $200 millones en notas senior con vencimiento el 1 de octubre de 2028. Estas Notas Adicionales se emitirán bajo un contrato existente desde el 21 de septiembre de 2023, que previamente emitió $200 millones en notas senior al 12.875% con vencimiento en 2028. La compañía planea utilizar los ingresos netos, junto con el efectivo disponible, para redimir $300 millones en monto principal de sus notas senior existentes al 5.500% que vencen en 2026.
La redención está programada para el 1 de noviembre de 2024, sujeta a la finalización de la oferta. Las Notas Adicionales se ofrecerán a compradores institucionales calificados bajo la Regla 144A y a personas no estadounidenses bajo la Regulación S de la Ley de Valores. Estas notas no han sido registradas bajo la Ley de Valores y no pueden ser ofrecidas ni vendidas en los EE. UU. sin una excepción o registro.
머서 인터내셔널 주식회사(Mercer International Inc., Nasdaq: MERC)가 2028년 10월 1일 만기의 $200백만 규모의 선순위 채권 추가 발행을 제안했습니다. 이 추가 채권은 2023년 9월 21일 기존 계약에 따라 발행되며, 이전에 2028년 만기 12.875% 선순위 채권 $200백만이 발행되었습니다. 회사는 순수익과 보유 현금을 이용해 2026년 만기 5.500% 선순위 채권의 $300백만 원금을 상환할 계획입니다.
상환은 2024년 11월 1일에 예정되어 있으며, 제안 완료를 조건으로 합니다. 추가 채권은 144A 규정에 따라 적격 기관 투자자에게 제공되며, 증권법의 S 규정에 따라 비미국인에게 제공됩니다. 이 채권은 증권법에 따라 등록되지 않았으며, 면제 또는 등록 없이는 미국에서 제공하거나 판매할 수 없습니다.
Mercer International Inc. (Nasdaq: MERC) a annoncé une offre supplémentaire proposée de 200 millions de dollars en obligations senior arrivant à échéance le 1er octobre 2028. Ces Notes Supplémentaires seront émises dans le cadre d'un acte existant datant du 21 septembre 2023, qui a précédemment émis 200 millions de dollars en obligations senior à 12,875% échéant en 2028. L'entreprise prévoit d'utiliser les produits nets, ainsi que la liquidité disponible, pour racheter 300 millions de dollars en montant principal de ses obligations senior existantes à 5,500% arrivant à échéance en 2026.
Le rachat est prévu pour le 1er novembre 2024, sous réserve de l'achèvement de l'Offre. Les Notes Supplémentaires seront proposées aux acheteurs institutionnels qualifiés selon la règle 144A et aux personnes non américaines selon le règlement S de la loi sur les valeurs mobilières. Ces notes n'ont pas été enregistrées en vertu de la loi sur les valeurs mobilières et ne peuvent être offertes ou vendues aux États-Unis sans exemption ou enregistrement.
Mercer International Inc. (Nasdaq: MERC) hat ein vorgeschlagenes zusätzliches Angebot von 200 Millionen US-Dollar an unbefristeten Anleihen mit Fälligkeit zum 1. Oktober 2028 angekündigt. Diese zusätzlichen Anleihen werden gemäß einem bestehenden Vertrag vom 21. September 2023 ausgegeben, der zuvor 200 Millionen US-Dollar an unbefristeten Anleihen mit einem Zinssatz von 12,875% und einer Fälligkeit im Jahr 2028 ausgegeben hat. Das Unternehmen plant, die Nettoerlöse sowie vorhandenes Bargeld zu verwenden, um 300 Millionen US-Dollar des ausstehenden Hauptbetrags seiner unbefristeten Anleihen mit einem Zinssatz von 5,500%, die 2026 fällig werden, einzulösen.
Die Einlösung ist für den 1. November 2024 geplant, abhängig von der Vollziehung des Angebots. Die zusätzlichen Anleihen werden qualifizierten institutionellen Käufern gemäß Regel 144A und nicht-US-Personen gemäß Regelung S des Wertpapiergesetzes angeboten. Diese Anleihen wurden nicht gemäß dem Wertpapiergesetz registriert und dürfen in den USA ohne Ausnahmegenehmigung oder Registrierung nicht angeboten oder verkauft werden.
- Refinancing $300 million of 5.500% senior notes due 2026 with new 12.875% senior notes due 2028
- Potential improvement in debt structure and maturity profile
- Increase in interest expense due to higher interest rate on new notes (12.875% vs 5.500%)
- Potential dilution of existing shareholders if new equity is issued in the future to repay the higher-interest debt
Insights
This announcement of a
The higher interest rate on the new notes will increase Mercer's interest expenses, potentially impacting profitability. However, the extended maturity (from 2026 to 2028) provides more financial flexibility. The use of cash on hand to cover the
For investors, this move signals both opportunities and risks. It demonstrates the company's ability to access capital markets but also highlights potential financial pressures. The impact on Mercer's credit profile and future borrowing costs will be important to monitor.
Mercer International's decision to issue additional notes at a significantly higher interest rate reflects broader market trends in the forest products industry. The sector has faced challenges including volatile commodity prices, supply chain disruptions and shifting demand patterns, which may have influenced investor risk perception and borrowing costs.
The company's diverse product portfolio, spanning pulp, lumber and biofuels, provides some resilience against market fluctuations. However, the higher cost of capital could impact Mercer's competitiveness and investment capacity in an industry that requires ongoing capital expenditures to maintain efficiency and meet environmental standards.
Investors should consider how this refinancing aligns with Mercer's long-term strategy and industry positioning. The ability to secure funding, albeit at a higher rate, may be viewed positively in a challenging market environment, but it also underscores the importance of operational efficiency to offset increased financial costs.
NEW YORK, Oct. 21, 2024 (GLOBE NEWSWIRE) -- Mercer International Inc. (Nasdaq: MERC) (the "Company") today announced that it intends to offer for sale (the "Offering")
The Company intends to use the net proceeds of the Offering, along with cash on hand, to redeem
In connection with the proposed redemption of the 2026 Senior Notes, the Company has issued a conditional notice to redeem all of the 2026 Senior Notes, at
Other than with respect to the date of issuance and the offering price, the Additional Notes will have the same terms as the Existing Notes. 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 Additional Notes will be 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 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, 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 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
FAQ
What is the size of Mercer International's (MERC) proposed add-on offering?
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When is the redemption date for Mercer International's (MERC) 5.500% senior notes due 2026?
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