By Ronda Fears
Nashville, Oct. 7 - Mercer International Inc. sold an upsized $82.5 million of seven-year convertible notes at par to yield 8.5% with a 26.5% initial conversion premium.
RBC Dominion was lead manager of the Rule 144A/Regulation S deal, upsized from $75 million, which was announced Sept. 12.
Mercer, a pulp and paper company headquartered in Seattle with the bulk of operations in Germany, said proceeds will be used to repay in full its two bridge loan facilities that together total €45 million, with the remainder for working capital and other general corporate purposes.
In May, Mercer first announced plans for a private offering of $65 million of convertibles.
Terms of the new deal are:
Issuer: Mercer International Inc.
| Issue: | Convertible senior subordinated notes
|
| Lead manager: | | RBC Dominion
|
| Amount | $82.5 million, up from $75 million
|
| Maturity: | October 2010
|
| Coupon: | 8.5%
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| Price: | Par
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| Yield: | 8.5%
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| Conversion premium: | 26.5%
|
| Conversion price: | $7.75
|
| Conversion ratio: | 129.0323
|
| Call: | Non-callable
|
| Pricing date: | Oct. 6, after the close
|
| Settlement: | Oct. 10
|
| Distribution: | Rule 144A, Regulation S
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