Mercer extends exchange offer for $67.3 million 8.5% convertibles

By Susanna Moon

Chicago, Aug. 25 - Mercer International Inc. said it further extended the exchange offer for its $67.3 million of 8.5% senior subordinated convertible notes due 2010 to 5 p.m. ET on Sept. 9 from 5 p.m. ET on Aug. 25.

The company said that no notes had been tendered as of 5 p.m. ET Aug. 25, unchanged from Aug. 11, the previous deadline for the exchange offer.

In exchange for each $1,000 principal amount of notes, the company is offering 129 shares of Mercer common stock and $200 principal amount of new 3% convertible senior subordinated notes due October 2012.

Holders will also receive accrued interest.

The company said the new notes are substantially the same as the old notes except for the coupon and the conversion price, which is $2.75 per share.

The 8.5% notes have a conversion price of $7.75 per share.

The offer began July 13.

Georgeson Inc. (800 267-4403) is the information agent.

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

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