Mercer International to price $200 million tap of 7 3/8% notes due 2025 in Thursday drive-by

By Paul A. Harris

Portland, Ore., Sept. 19 – Mercer International Inc. plans to price a $200 million add-on to its 7 3/8% senior notes due Jan. 15, 2025 in a quick-to-market Thursday trade following a late-morning conference call with investors, according to market sources.

Initial price talk is 102.5 to 103, a trader said.

Credit Suisse Securities (USA) LLC is the left lead bookrunner for the Rule 144A and Regulation S offering. Barclays and RBC Capital Markets LLC are the joint bookrunners.

The notes become callable on Jan. 15, 2021 at 103.688 and feature a 35% equity clawback at 107.375 until Jan. 15, 2021 and a 101% poison put.

The Vancouver, B.C.-based pulp producer plans to use the proceeds to redeem its remaining 2022 senior notes and for general corporate purposes.

The original $350 million issue priced in November 2018.

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