S&P gives Mercer notes BB-

S&P said it assigned a BB- issue-level rating to Mercer International Inc.'s proposed $300 million senior unsecured notes due 2026.

The proposed notes will rank pari passu with the existing 2022 and 2024 senior unsecured notes.

The 3 recovery rating reflects an expectation for meaningful (50%-70%; rounded estimate 50%) recovery in the event of default.

Proceeds will be used along with cash on hand to redeem $300 million of its senior unsecured notes due 2022.

The BB- long-term corporate credit rating and stable outlook are unchanged.

“We expect the transaction will improve Mercer's debt maturity profile further supporting our strong liquidity profile on the company,” the agency said in a news release.

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