NEW YORK (News release) -- Mercer International Inc. has successfully entered into a new Euro 300 million revolving credit facility for its German subsidiaries with a syndicate of European banks (the "New Facility"). The New Facility has a five year term, is unsecured and accrues interest at a rate of Euribor plus a stipulated margin.
The New Facility is "sustainability linked" whereby if certain sustainability targets are achieved, there is a reduction in the applicable interest rate. The sustainability-linked feature is consistent with Mercer's long term ESG objectives as validated by the Science Based Targets Initiative.
The New Facility is available to Mercer's German operating subsidiaries, including after closing of its acquisition, HIT Holzindustrie Torgau GmbH & Co. KG and replaces Mercer's current Euro 200 million revolving credit facility.
In connection with the New Facility, Mercer was represented by Sangra Moller LLP.
Mercer International Inc. is a global pulp manufacturing company.