Mercer issues new convertibles for $43.25 million 8.5% convertibles

By Jennifer Chiou

New York, Dec. 11 - Mercer International Inc. announced that it issued $43,811,653 of new 8.5% convertible senior subordinated notes due Jan. 15, 2012 in exchange for $43.25 million of its existing 8.5% convertible senior subordinated notes due October 2010.

The company announced that some holders had agreed to the exchanges on Nov. 25.

The holders received new notes equal to the principal amount of notes being exchanged plus accrued interest.

The new convertibles have substantially the same terms as the old convertibles other than their maturity date and conversion price, which is $3.30 per share.

The new notes are limited to $72.5 million aggregate principal amount.

The completion of the exchange was subject to some conditions including Nasdaq approval and qualification of the indenture under which the new convertibles will be issued.

Wells Fargo Bank, NA is the trustee.

Mercer is a pulp manufacturing company based in Vancouver, B.C., with U.S. headquarters in Seattle.

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