Zellstoff Stendal closes €75 million five-year revolving loan facility

By Susanna Moon

Chicago, Dec. 1 – Zellstoff Stendal GmbH obtained a €75 million five-year revolving credit facility on Nov. 25 with UniCredit Bank AG, Credit Suisse AG, London Branch, Royal Bank of Canada and Barclays Bank plc as lenders, according to an 8-K filing with the Securities and Exchange Commission.

The revolver will mature on the earlier of Oct. 31, 2019 and one month prior to the maturity of the $250 million of 7% senior notes due 2019.

The facility may be used in the form of cash advances or advances by letters of credit or bank guarantees of up to €5 million.

Interest will be Euribor plus 350 basis points with fees of 225 bps on issued but undrawn letters of credit and bank guarantees. There is a commitment fee of 110 bps on unused availability.

The facility is secured by a first ranking registered security interest on the inventories, receivables and accounts of Stendal. All shareholder loans made by Mercer International Inc. to Stendal will be subordinated to the debt under the facility.

Stendal used borrowings of €21 million under the facility for the repayment of debt related to its two project loan facilities. Proceeds also will be used for working capital and other general corporate purposes.

Zellstoff is a 74.9% owned subsidiary of Mercer International Inc., a Vancouver-based pulp manufacturing company.

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