Moody's rates Mercer notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to Mercer International Inc.'s proposed $300 million note offering, due 2013.

Moody's also assigned a B2 senior implied rating, Caa1 senior unsecured issuer rating and speculative grade liquidity rating of SGL-3 to Mercer. The outlook is stable.

Proceeds from the proposed note offering, combined with funds received from a proposed new equity issuance by Mercer and cash on hand, will be used to fund the acquisition of substantially all of the assets of Stone Venepal (Celgar) Pulp Inc. for about €169 million. Part of the proceeds will also be used to repay all of the outstanding debt at Mercer's Rosenthal pulp facility.

Moody's said the Caa1 rating on the senior unsecured notes reflects their structural subordination to the two separate working capital facilities, one at Celgar and the other at Rosenthal.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.