By Paul A. Harris
Portland, Ore., Nov. 29 – Mercer International Inc. priced a $350 million issue of senior notes due Jan. 15, 2025 (Ba3/BB-) at par to yield 7 3/8% on Thursday, according to a syndicate source.
The yield printed at the wide end of yield talk in the 7¼% area.
Credit Suisse Securities (USA) LLC was the left bookrunner. Barclays and RBC Capital Markets LLC were the joint bookrunners.
The Vancouver, B.C.-based pulp producer plans to use the proceeds to fund its acquisition of Daishowa-Marubeni International Ltd., a Canada-based forest products company.
| Issuer: | Mercer International Inc.
|
| Amount: | $350 million
|
| Maturity: | Jan. 15, 2025
|
| Securities: | Senior notes
|
| Left bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint bookrunners: | Barclays, RBC Capital Markets LLC
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7 3/8%
|
| Spread: | 446 bps
|
| First call: | Jan. 15, 2021 at 103.688
|
| Equity clawback: | 35% at 107.375 until Jan. 15, 2021
|
| Trade date: | Nov. 29
|
| Settlement date: | Dec. 7
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 7¼% area
|
| Marketing: | Investor call
|
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