Mercer amends exchange offer for $67.3 million 8.5% convertibles

By Susanna Moon

Chicago, Sept. 9 - Mercer International Inc. said it amended the exchange offer for its $67.3 million of 8.5% senior subordinated convertible notes due 2010.

In exchange for each $1,000 principal amount of notes, the company is now offering $1,000 principal amount of new 8.5% convertible senior subordinated notes due October 2011, 17 shares of Mercer common stock and 15 warrants for one common share, exercisable at $4.25 per share until Oct. 15, 2011. Mercer will pay accrued interest to the settlement date.

The company previously said that, for each $1,000 principal amount, it was offering 129 shares of Mercer common stock and $200 principal amount of new 3% convertible senior subordinated notes due October 2012.

The new notes will have substantially all of the same terms except for the maturity date, which is a year later.

The offer will expire at 5 p.m. ET on Sept. 23.

Holders will also receive accrued interest.

The company said the new notes are substantially the same as the old notes except for the coupon and the conversion price, which is $2.75 per share.

The 8.5% notes have a conversion price of $7.75 per share.

The offer began July 13.

Georgeson Inc. (800 267-4403) is the information agent.

Mercer International is a pulp manufacturing company based in Vancouver, B.C., with U.S. headquarters in Seattle.

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