Pulp and Paper Canada

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Mercer shares to buy Celgar


February 21, 2005
By Pulp & Paper Canada

Mercer International has announced the public offering of 9,416,196 of its shares of beneficial interest as priced…

Mercer International has announced the public offering of 9,416,196 of its shares of beneficial interest as priced at $8.50 per share, for gross proceeds of approximately $80 million. Mercer granted the underwriters an option for 30 days to purchase up to an additional 1,412,429 shares at the public offering price to cover over-allotments, if any. Mercer also priced a separate public offering of $310 million of senior notes, which will pay interest at a rate of 9.25% per annum and mature in 2013.

The net proceeds from the offerings will be used to pay the cash portion of the purchase price of the Celgar pulp mill and its working capital and transaction costs. The company also intends to repay the bank debt for its Rosenthal pulp mill, as well as general corporate purposes and working capital.

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