MERCER INTERNATIONAL INC. (NASDAQ:MERC) Files An 8-K Entry into a Material Definitive Agreement

ME Staff 8-k
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MERCER INTERNATIONAL INC. (NASDAQ:MERC) Files An 8-K Entry into a Material Definitive Agreement

ITEM1.01.

ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

On April12, 2017, Zellstoff-Und Papierfabrik Rosenthal GmbH (ZPR)
and Mercer Timber Products GmbH (MTP), each wholly owned
subsidiaries of Mercer International Inc. (the Company), entered
into a revolving facility agreement (the Credit Agreement) with
Unicredit Bank AG, acting as agent, lead arranger, issuing bank
and security agent, in connection with the replacement of ZPRs
existing 25.0million revolving working capital facility with a
new 70.0million joint revolving credit facility for ZPR and MTP
(the New Facility).

The New Facility is available to both ZPR and MTP, with MTPs
borrowings not to exceed 45.0million thereunder, and includes the
following terms, among others:

The facility has a term of five years.

The interest payable on loans under the facility is Euribor
plus 2.95%. Each loan is to be repaid on the last day of
the respective interest period and in full on the
termination date and each advance by way of a letter of
credit shall be repaid on the applicable expiry date of
such letter of credit.

There is a 0.90%per annum commitment fee on the unused and
uncancelled amount of the facility which, is payable
semi-annually in arrears.

The facility is secured by a first ranking security
interest on the inventories, receivables and accounts of
ZPR and MTP.

The facility contains customary restrictive covenants,
which, among other things, govern the ability of the
borrowers thereunder to incur liens, sell assets, incur
indebtedness, make investments, enter into joint ventures,
change their respective businesses and issue, repurchase or
redeem shares. The facility also contains customary events
of default.

The description of the Credit Agreement contained herein does not
purport to be complete and is qualified in its entirety by
reference to the Credit Agreement that will be filed as an
exhibit to the Companys report on Form 10-Q for the quarterly
period ended March31, 2017.

ITEM1.02. TERMINATION OF A MATERIAL DEFINITIVE
AGREEMENT

The information set forth in Item1.01 above is incorporated by
reference into this Item1.02.

ITEM2.03. CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN
OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A
REGISTRANT

The information set forth in Item1.01 above is incorporated by
reference into this Item2.03.

ITEM8.01. OTHER EVENTS

On April12, 2017, the Company announced that it had completed,
through its wholly-owned subsidiary, MTP, its previously
announced agreement to acquire substantially all of the assets
comprising a sawmill and bio-mass power plant, near Friesau,
Germany, for approximately $55.1 million plus defined working
capital of approximately $6.5 million (the Acquisition).

A copy of the Companys press release dated April12, 2017,
announcing the New Facility and completion of the Acquisition, is
attached hereto as Exhibit 99.1. The information in such press
release shall not be deemed filed for purposes of Section18 of
the Securities Exchange Act of 1934, as amended (the Exchange
Act), or otherwise subject to the liabilities of that Section,
nor shall it be deemed incorporated by reference into any
registration statement or other document filed under the
Securities Act of 1933, as amended, or the Exchange Act, except
as shall be expressly set forth by specific reference in such
filing.

ITEM9.01. FINANCIAL STATEMENTS AND EXHIBITS
(d)

Exhibits.

ExhibitNo.

Description

99.1 Press release dated April12, 2017.


About MERCER INTERNATIONAL INC. (NASDAQ:MERC)

Mercer International Inc. is engaged in producing (northern bleached softwood kraft) NBSK pulp. The Company operates in the pulp industry and produces pulp for resale, known as market pulp, in Germany. It also produces and sells tall oil, which is used as both a chemical additive and as a green energy source. The Company operates over two mills in Eastern Germany and approximately one mill in Western Canada. The Company’s NBSK pulp mills include Rosenthal mill, which is located in the town of Blankenstein, Germany, approximately 300 kilometers south of Berlin; Stendal Mill, which is located near the town of Stendal, Germany, approximately 130 kilometers west of Berlin, and Celgar Mill, which is located near the city of Castlegar, British Columbia, Canada, over 600 kilometers east of Vancouver. The Company’s NBSK pulp mills has an annual production capacity of approximately 1.5 million air-dried metric tons (ADMTs) of NBSK pulp and generates over 305 megawatts (MW) of electricity.

MERCER INTERNATIONAL INC. (NASDAQ:MERC) Recent Trading Information

MERCER INTERNATIONAL INC. (NASDAQ:MERC) closed its last trading session down -0.15 at 11.45 with 130,090 shares trading hands.