Mercer to sell $65 million convertible

Nashville, May 9 - Mercer International Inc. announced plans for a private offering of $65 million of convertible notes or equity-related securities, with proceeds earmarked to repay existing bridge debt and for general corporate purposes.

Mercer is a European pulp and paper manufacturing company.

On Wednesday, Mercer said that at its upcoming annual meeting of shareholders it is proposing to elect Deloitte & Touche LLP as its new independent auditor, replacing Peterson Sullivan PLLC. But the company added that there are no disagreements or reportable events between the company and Peterson Sullivan.

On Monday, the company reported first quarter revenues declined to €50.4 million from €62.5 million in first quarter 2002, primarily as the current period does not include the results of the Landqart specialty paper mill. The company's interest in Landqart was reorganized in December.

Mercer posted a first quarter loss from operations of €0.5 million, compared to income from operations of €0.9 million a year earlier. There was a net loss of €10.9 million, or €0.65 per diluted share, compared to a net loss of €5.4 million, or €0.32 per diluted share, a year before.

Mercer shares closed off 10c, or 2.17%, to $4.50 in the U.S. Friday.

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