Mercer to acquire minority interest in Stendal, edits credit facilities

By Tali Rackner

Norfolk, Va., Sept. 29 – Mercer International Inc., announced that it agreed to acquire all loans and minority shares in its Stendal mill and amended the senior project finance credit facility and amortizing term facility to provide greater financial flexibility to Stendal, according to a press release.

The amendments loosen the financial covenant ratios that Stendal must comply with and reduces scheduled principal repayments under the project finance credit facility by 50% while retaining its current "cash sweep."

In connection with the amendment, Mercer made a capital investment of $20 million in Stendal.

There is currently about $499 million outstanding under the senior project finance credit facility and roughly $18 million outstanding under the amortizing term facility.

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

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