By Paul A. Harris
Portland, Ore., Sept. 19 – Mercer International Inc. priced a $200 million add-on to its 7 3/8% senior notes due Jan. 15, 2025 (Ba3/BB-) at 102.75 to yield 6.435% in a quick-to-market Thursday trade, according to market sources.
The issue price came in the middle of the 102.5 to 103 price talk, which was also the early guidance, a trader said.
Credit Suisse Securities (USA) LLC was the left lead bookrunner. Joint bookrunners were Barclays and RBC Capital Markets LLC.
The Vancouver, B.C.-based pulp producer plans to use the proceeds to redeem its remaining 2022 senior notes and for general corporate purposes.
| Issuer: | Mercer International Inc.
|
| Amount: | $200 million
|
| Maturity: | Jan. 15, 2025
|
| Security description: | Add-on to 7 3/8% senior notes due Jan. 15, 2025
|
| Left bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint bookrunners: | Barclays and RBC Capital Markets LLC
|
| Coupon: | 7 3/8%
|
| Price: | 102.75
|
| Yield to worst: | 6.435%
|
| Spread: | 474 bps
|
| First call: | Jan. 15, 2021 at 103.688
|
| Equity clawback: | 35% at 107.375 until Jan. 15, 2021
|
| Trade date: | Sept. 19
|
| Settlement date: | Oct. 3 with accrued interest
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 102.5 to 103
|
| Marketing: | Quick to market
|
| Original issue: | $350 million priced in November 2018
|
| Total issue size: | $550 million
|
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