By Paul A. Harris
Portland, Ore., Sept. 19 – Mercer International, Inc. priced a $200 million issue of five-year senior notes (B2/B) at par to yield 12 7/8% in a Tuesday drive-by, according to market sources.
The yield printed at the tight end of yield talk in the 13% area. Initial guidance was 13% to 13¼%.
UBS Securities LLC was the left bookrunner. Joint bookrunners were Credit Suisse Securities (USA) LLC, Barclays and RBC Capital Markets, LLC.
The Vancouver, B.C.-based pulp producer plans to use the proceeds to pay down its revolving credit facility, and for working capital and general corporate purposes, including discretionary capital projects at its facilities.
| Issuer: | Mercer International Inc.
|
| Amount: | $200 million
|
| Issue: | Senior notes
|
| Maturity: | Oct. 1, 2028
|
| Left bookrunner: | UBS Securities LLC
|
| Joint bookrunners: | Credit Suisse Securities (USA) LLC, Barclays and RBC Capital Markets, LLC
|
| Coupon: | 12 7/8%
|
| Price: | Par
|
| Yield: | 12 7/8%
|
| Spread: | 831 bps
|
| First call: | Oct. 1, 2025 at 106.438
|
| Trade date: | Sept. 19
|
| Settlement date: | Sept. 21
|
| Ratings: | Moody’s: B2
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 13% area
|
| Marketing: | Drive-by
|
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