New Issue: Mercer prices $25 million tack-on to 6˝% notes due 2024 at par to yield 6.947%

By Paul A. Harris

Portland, Ore., March 16 – Mercer International priced a $25 million tack-on to its 6˝% senior notes due 2024 (B1/BB-) at par to yield 6.497% on Thursday, according to an informed source.

Credit Suisse Securities (USA) LLC was the sole bookrunner.

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.

Issuer:	Mercer International Inc.
Amount:	$25 million
Maturity:	Feb. 1, 2024
Security description:	Tack-on to 6˝% senior notes due Feb. 1, 2024
Bookrunner:	Credit Suisse
Coupon:	6˝%
Price:	Par
Yield:	6.497%
Spread:	445 bps
First call:	Feb. 1, 2020 at 103.25
Equity clawback:	35% at 106.5 until Feb. 1, 2020
Trade date:	March 16
Settlement date:	March 27 with accrued interest
Ratings:	Moody’s B1
	Standard & Poor’s: BB-
Distribution:	Rule 144A and Regulation S with registration rights
Marketing:	Quick to market
Original issue:	$225 million priced at par on Jan. 31, 2017
Fungibility:	Tack-on notes will become immediately fungible with original notes
Total issue size:	$250 million

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