Mercer International Inc. Announces Completion of the Acquisition of the Celgar NBSK Pulp Mill and Note and Share Offerings
February 14 2005 - 3:54PM
PR Newswire (US)
Mercer International Inc. Announces Completion of the Acquisition
of the Celgar NBSK Pulp Mill and Note and Share Offerings NEW YORK,
Feb. 14 /PRNewswire-FirstCall/ -- Mercer International Inc.
("Mercer" or the "Company") (NASDAQ:MERCSNASDAQ:TSX:NASDAQ:MRI.U)
today announced it has completed its previously announced
acquisition of the Celgar NBSK pulp mill for approximately $210
million plus an amount for working capital. $170 million of the
purchase price was paid in cash and $40 million was paid in Mercer
shares issued at a price of $9.50 per share. The acquisition
positions Mercer as one of the world's largest publicly traded
market producers of NBSK pulp with a consolidated annual NBSK pulp
production capacity of approximately 1.3 million tonnes. On
February 14, 2005, Mercer completed its previously announced sale
of $310 million of 9.25% senior unsecured notes due 2013 and
9,416,196 Mercer shares at a price of $8.50 per share. After
commissions and discounts, such sales resulted in proceeds of
approximately $302.5 million and $75.8 million, respectively. The
Company used such proceeds to pay the cash portion of the purchase
price for the Celgar pulp mill and its working capital, repay all
of the bank indebtedness of its Rosenthal pulp mill and for working
capital. On February 14, 2005, Mercer also entered into a $30.0
million revolving working capital facility for the Celgar pulp mill
and a euro 40.0 million revolving working capital facility for its
Rosenthal pulp mill. Mercer is a pulp and paper manufacturing
company. Mercer operates three modern NBSK pulp mills in Germany
and Canada with a consolidated annual production capacity of
approximately 1.3 million tonnes. The preceding includes forward
looking statements which involve known and unknown risks and
uncertainties which may cause the Company's actual results in
future periods to differ materially from forecasted results. Among
those factors which could cause actual results to differ materially
are the following: market conditions, competition, construction and
equipment performance risks and other risk factors listed from time
to time in the Company's SEC reports. DATASOURCE: Mercer
International Inc. CONTACT: Investors: Eric Boyriven, Media: Scot
Hoffman, both of Financial Dynamics, +1-212-850-5600, for Mercer
International Inc. Web site: http://www.mercerinternational.com/
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