By Paul A. Harris
Portland, Ore., Jan. 31 – Mercer International Inc. priced a $225 million issue of seven-year senior notes (B1/BB-) at par to yield 6½% on Tuesday, according to a syndicate source.
The yield printed at the tight end of the 6½% to 6¾% yield talk.
Credit Suisse Securities (USA) LLC, Barclays and RBC Capital Markets LLC were the joint bookrunners.
The pulp producer plans to use the proceeds to refinance its 7% senior notes due 2019.
Mercer is based in Vancouver, B.C., with U.S. headquarters in Seattle.
| Issuer: | Mercer International Inc.
|
| Amount: | $225 million
|
| Maturity: | Feb. 1, 2024
|
| Securities: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Barclays, RBC Capital Markets LLC
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 424 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Feb. 1, 2020, then callable at 103.25
|
| Equity clawback: | 35% at 106.5 until Feb. 1, 2020
|
| Trade date: | Jan. 31
|
| Settlement date: | Feb. 3
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 6½% to 6¾%
|
| Marketing: | Roadshow
|
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