Mercer (NASDAQ:MERCS)
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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/