New York, New York, USA, 22 January 2010 -- Mercer International Inc. (Nasdaq: MERC, TSX: MRI. today announced the expiration and results of its exchange offer for up to a maximum of USD 23,625,000 aggregate principal amount of its outstanding 8.5% convertible senior subordinated notes due 2010 (the old notes).
The exchange offer expired at 5:00 p.m., Easern Time, on 21 January 2010. As of the expiration date, an aggregate of USD 21,730,000 principal amount of old notes were validly tendered and accepted for exchange, according to information provided by Wells Fargo Bank, National Association, the exchange agent for the exchange offer. This will result in the issuance of an aggregate of USD 22,012,490 principal amount of Mercer's new 8.5% convertible senior subordinated notes due 2012 (the new notes). Delivery of the new notes is expected to be made on 26 January 2010. Upon settlement of the exchange offer, an aggregate of USD 2,275,000 principal amount of old notes will remain outstanding.
Jimmy S.H. Lee, president and chairman, stated, "We are pleased with the results of the exchange offer which, together with the private exchange we completed late last year, will enhance our liquidity and better position us to realize on improving pulp markets and prices."
Holders who validly tendered and did not withdraw their old notes by 5 p.m. Eastern Time, on the expiration date and whose old notes were accepted for exchange will receive, for each USD 1000 principal amount of old notes, an amount of new notes equal to USD 1000 principal amount plus accrued and unpaid interest on the USD 1000 principal amount of old notes to and including 09 December 2009.
Mercer International Inc. is a global pulp manufacturing company. To obtain further information on the company, visit http://www.mercerint.com.