| PAPER INDUSTRY NEWS - FEBRUARY 2005 |
This page contains pulp and paper industry news for February 2005
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NEWS FEBRUARY2005
Mercer International Inc. Announces
Completion of the Acquisition of the Celgar NBSK Pulp Mill
New York, NY, USA 14 February 2005/PRNewswire-FirstCall/ -- Mercer International
Inc. ("Mercer" or the "Company") (NASDAQ:MERCS)(NASDAQ: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.
Source: Mercer International Inc.
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