Mercer to price $25 million tack-on to 6½% notes in Thursday drive-by

By Paul A. Harris

Portland, Ore., March 16 – Mercer International plans to price a $25 million tack-on to its 6½% senior notes due 2024 in a quick-to-market Thursday transaction, according to an informed source.

Credit Suisse Securities (USA) LLC is the sole bookrunner for the Rule 144A and Regulation S with registration rights offer.

The notes become callable on Feb. 1, 2020 at 103.25 and feature a 35% equity clawback at 106.5 until Feb. 1, 2020.

The pulp producer plans to use the proceeds to fund the acquisition of sawmills and a bio-mass power plant near Friesau, Germany.

Mercer is based in Vancouver, B.C., with U.S. headquarters in Seattle.

The original $225 million issue priced at par on Jan. 31.

The tack-on notes will become immediately fungible with the original notes.

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