Mercer International Amends Stendal Mill Credit Facility, Invests $20 Million in Stendal
Mercer's Stendal pulp mill in Germany has the annual capacity to produce 650 ADMTs (Air-Dried Metric Tons) of NBSK.
Oct. 1, 2013 (Press Release) - Mercer International Inc. (the "Company") announced today that Stendal has successfully amended its senior project finance credit facility (approximately EURO 413 million outstanding) and its EURO 17.0 million amortizing term facility in respect of Project Blue Mill (approximately EURO 15 million outstanding) (the "Stendal Facilities").
The amendment agreement modifies the Stendal Facilities to provide the Stendal mill greater financial flexibility by, among other things:
- Waiving compliance with the annual debt service cover ratio and the senior debt to EBITDA cover ratio under the Stendal Facilities until and including December 31, 2013;
- Amending the same so that the financial covenants now deduct from senior debt cash in the debt service reserve account and cash above a stipulated threshold in order to include certain cash reserves in the calculation of senior debt;
- Providing that a failure to satisfy the covenant to maintain an annual debt service cover ratio under the Stendal Facilities would only be an event of default when amounts in the debt service reserve account plus certain cash reserves are below a specified threshold; and
- Revising the calculation of amounts required to cure financial covenant defaults under the Stendal Facilities.
In connection with the amendment agreement, the Company made a capital investment of $20.0 million in Stendal.
"We are pleased to have successfully amended and improved the covenants in our Stendal mill credit facilities, which will provide our Stendal mill with greater flexibility," said Mr. Jimmy Lee, President and Chairman. "We are pleased with the continued support of our lenders."
The description above is a summary of selected key terms of the amendment agreement and is qualified in its entirety by the complete text of the agreement amendment to be filed with the United States Securities and Exchange Commission.
The Stendal mill is a state-of-the-art, single-line NBSK pulp mill situated near the town of Stendal, Germany with an annual pulp production capacity of approximately 650,000 ADMTs.
Mercer International Inc. is a global pulp manufacturing company. To obtain further information on the company, please visit its web site at www.mercerint.com.
SOURCE: Mercer International Inc.