Mercer International Inc. Completes Private Add-On Offering of $200,000,000 of 2028 Senior Notes
Mercer International (Nasdaq: MERC) has completed a private offering of $200 million in 12.875% senior notes due October 1, 2028, issued at 103.000% of principal amount. The Additional Notes, combined with cash on hand, will be used to redeem $300 million of 5.500% senior notes due 2026. The redemption is scheduled for November 1, 2024. This transaction will result in a $100 million reduction in total debt. The Additional Notes were sold to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S of the Securities Act.
Mercer International (Nasdaq: MERC) ha completato un'offerta privata di $200 milioni in obbligazioni senior al 12,875% con scadenza il 1 ottobre 2028, emesse al 103,000% dell'importo nominale. Le Obbligazioni Aggiuntive, insieme alla liquidità disponibile, saranno utilizzate per riscattare $300 milioni di obbligazioni senior al 5,500% con scadenza nel 2026. Il riscatto è previsto per il 1 novembre 2024. Questa operazione comporterà una riduzione di $100 milioni del debito totale. Le Obbligazioni Aggiuntive sono state vendute a investitori istituzionali qualificati ai sensi della Regola 144A e a persone non statunitensi ai sensi della Regolamentazione S del Securities Act.
Mercer International (Nasdaq: MERC) ha completado una oferta privada de $200 millones en notas senior al 12.875% con vencimiento el 1 de octubre de 2028, emitidas al 103.000% del monto principal. Las Notas Adicionales, combinadas con efectivo disponible, se utilizarán para redimir $300 millones de notas senior al 5.500% con vencimiento en 2026. La redención está programada para el 1 de noviembre de 2024. Esta transacción resultará en una reducción de $100 millones en la deuda total. Las Notas Adicionales se vendieron a compradores institucionales calificados bajo la Regla 144A y a personas no estadounidenses bajo la Regulación S del Securities Act.
머서 인터내셔널(Mercar International, Nasdaq: MERC)은 $200 million에 대해 12.875%의 만기 2028년 10월 1일의 선순위 채권 사모 발행을 완료했습니다. 이 채권은 원금의 103.000%에 발행되었습니다. 추가 채권은 보유 중인 현금과 함께 2026년에 만기가 도래하는 $300 million의 5.500% 선순위 채권을 상환하는 데 사용될 것입니다. 상환은 2024년 11월 1일에 예정되어 있습니다. 이 거래로 총 부채가 $100 million 감소하게 됩니다. 추가 채권은 참가 자격이 있는 기관 투자자에게 Rule 144A에 따라 판매되었으며, 비 미국인에게는 Securities Act의 Regulation S에 따라 판매되었습니다.
Mercer International (Nasdaq: MERC) a terminé une offre privée de $200 millions en obligations senior à 12,875% arrivant à échéance le 1er octobre 2028, émises à 103,000% du montant nominal. Les Obligations Supplémentaires, combinées à la liquidité disponible, seront utilisées pour racheter $300 millions d'obligations senior à 5,500% arrivant à échéance en 2026. Le rachat est prévu pour le 1er novembre 2024. Cette opération entraînera une réduction de $100 millions de la dette totale. Les Obligations Supplémentaires ont été vendues à des investisseurs institutionnels qualifiés selon la Règle 144A et à des personnes non américaines selon la Réglementation S du Securities Act.
Mercer International (Nasdaq: MERC) hat ein privates Angebot von $200 Millionen in 12,875% Senior Notes mit Fälligkeit am 1. Oktober 2028 abgeschlossen, die zu 103,000% des Nennbetrags ausgegeben wurden. Die zusätzlichen Anleihen werden zusammen mit verfügbaren Bargeld verwendet, um $300 Millionen von 5,500% Senior Notes mit Fälligkeit 2026 einzulösen. Die Einlösung ist für den 1. November 2024 geplant. Diese Transaktion führt zu einer Reduzierung von $100 Millionen der Gesamtschulden. Die zusätzlichen Anleihen wurden an qualifizierte institutionelle Käufer gemäß Regel 144A und an nicht-u.s. Personen gemäß Regulation S des Securities Act verkauft.
- Total debt reduction of $100 million
- Successful completion of $200 million notes offering
- Higher interest rate on new notes (12.875%) compared to existing notes (5.500%)
- Notes issued at premium of 103.000% of principal amount
Insights
This debt refinancing represents a significant financial restructuring that improves MERC's balance sheet. The company is effectively replacing
The net reduction in debt should improve leverage ratios, though higher interest expenses will impact cash flows. The transaction demonstrates proactive liability management, extending debt maturities by two years and reducing overall debt load, albeit at a higher cost of capital. This could signal management's confidence in future operational cash flows to service the higher interest burden.
NEW YORK, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Mercer International Inc. (Nasdaq: MERC) (the "Company") today announced that it has completed its previously announced private offering of
The Additional Notes were issued at a price of
Pursuant to the previously announced redemption, the Company will redeem all
As a result of the completion of the offering and the redemption, the Company will have reduced its total debt by
The Additional Notes were 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 form, 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 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" which involve known and unknown risks and uncertainties which may cause our actual results in future periods to differ materially from forecasted results. In particular, statements about our plans or intentions regarding the intended use of proceeds of the Additional Notes and the completion of the redemption of the 2026 Notes are forward looking statements and may not necessarily occur. Words such as "expects", "anticipates", "projects", "intends", "designed", "will", "believes", "estimates", "may", "could" and variations of such words and similar expressions are intended to identify such forward-looking statements. Among those factors which could cause actual results to differ materially are the following: the highly cyclical nature of our business, raw material costs, our level of indebtedness, competition, foreign exchange and interest rate fluctuations, expenditures for capital projects, environmental regulation and compliance, disruptions to our production, market conditions and other risk factors listed from time to time in our SEC reports.
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 value of Mercer International's (MERC) new senior notes offering?
How much debt will MERC reduce through this refinancing?
When will MERC redeem its 2026 senior notes?
What is the interest rate on MERC's new 2028 senior notes?
