Mercer records early tenders, consents for 93.2% of 9¼% senior notes

By Jennifer Chiou

New York, Nov. 17 - Mercer International Inc. announced the receipt of tenders from holders of $289 million, or 93.2%, of its $310 million of 9¼% senior notes due 2013 at the early tender deadline of 5 p.m. ET on Nov. 16.

The company also said it obtained the needed consents to amend the note indenture to, among other things, eliminate substantially all of the restrictive covenants, some events of default and related provisions.

For each $1,000 principal amount, the company is offering $1,023.13, including a $30.00 consent payment for those who tender prior to the early deadline. Early settlement was anticipated for Nov. 17.

Mercer will also pay accrued interest.

The offer is set to end at 11:59 p.m. ET on Dec. 1. It began on Nov. 2.

The amendments required consents from holders of a majority of the notes, and the offer is contingent on the issue of at least $300 million of new debt.

If any notes remain outstanding following the offer, Mercer may redeem them.

RBC Capital Markets, LLC is the dealer manager and solicitation agent (212 618-7822 or 877 381-2099). Georgeson Inc. is the information agent (800 267-4403 or 212 440-9800).

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

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