Mercer International Inc. Prices Offering of 9,416,196 Shares of Beneficial Interest and $310.0 Million Offering of Senior Notes
February 09 2005 - 7:30AM
PR Newswire (US)
Mercer International Inc. Prices Offering of 9,416,196 Shares of
Beneficial Interest and $310.0 Million Offering of Senior Notes NEW
YORK, Feb. 9 /PRNewswire-FirstCall/ -- Mercer International Inc.
("Mercer" or the "Company") (Nasdaq: MERCS; TSX: MRI.U) announced
today that the public offering of 9,416,196 of its shares of
beneficial interest was priced at $8.50 per share for gross
proceeds of approximately $80.0 million. Mercer has granted the
underwriters an option for 30 days to purchase up to an additional
1,412,429 shares at the public offering price to cover
over-allotments, if any. Mercer today also priced a separate public
offering of $310.0 million of senior notes. The notes will pay
interest at a rate of 9.25% per annum and mature in 2013. The net
proceeds from the offering of the shares and senior notes and cash
on hand will be utilized to pay the cash portion of the purchase
price of the previously announced acquisition of the Celgar pulp
mill and its working capital, transaction costs, repay all of the
bank indebtedness of the Company's Rosenthal pulp mill and for
general corporate purposes, including working capital. RBC Capital
Markets is the lead manager of the offering of the shares of
beneficial interest, with CIBC World Markets, Raymond James &
Associates and D.A. Davidson & Co. serving as co-managers. RBC
Capital Markets and Credit Suisse First Boston are joint
book-running managers of the senior note offering with CIBC World
Markets serving as co-manager. Each of the offering of the shares
of beneficial interest and the offering of the senior notes may
only be made by means of a prospectus. A copy of the prospectus for
the share offering may be obtained from RBC Capital Market at One
Liberty Plaza, New York, NY 10006. A copy of the prospectus for the
offering of the senior notes may be obtained from RBC Capital
Markets at One East Weaver Street, Third Floor, Greenwich, CT
06831. Mercer Mercer is a pulp and paper manufacturing company with
operations in Europe and, after the acquisition of the Celgar pulp
mill, in Canada. Mercer currently operates two modern NBSK pulp
mills in Germany with an aggregate annual production capacity of
approximately 862,000 tonnes. The preceding includes
forward-looking statements which involve known and unknown risks
and uncertainties which may cause the Company's actual results in
future periods to differ materially from forecasted results. Among
those factors which could cause actual results to differ materially
are the following: market conditions, competition, construction and
equipment performance risks and other risk factors listed from time
to time in the Company's SEC reports. DATASOURCE: Mercer
International Inc. CONTACT: Jimmy S.H. Lee, Chairman &
President, +41-43-344-7070, David M. Gandossi, Executive
Vice-President & Chief Financial Officer, +1-604-684-1099, both
of Mercer; or Investors: Eric Boyriven, or Media: Scot Hoffman,
both of Financial Dynamics, +1-212-850-5600 Web site:
http://www.mercerinternational.com/
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