Attached files
file | filename |
---|---|
8-K - FORM 8-K - MERCER INTERNATIONAL INC. | c20870e8vk.htm |
Exhibit 99.1
For Immediate Release
MERCER INTERNATIONAL INC. ANNOUNCES SHARE REPURCHASE PROGRAM
NEW YORK, NY, August 2, 2011 Mercer International Inc. (Nasdaq: MERC, TSX: MRI.U) (the
Company) today announced that its Board of Directors has authorized a share repurchase program
for up to $25,000,000 of the Companys outstanding common stock over the next 12 months.
Additionally, the program calls for an equivalent reduction in long term indebtedness over the same
period.
Mr. Jimmy Lee, President and Chairman, stated: Our intention to make open market purchases
of our outstanding shares of common stock and our long term debt reflects our improved liquidity
position, our Board of Directors continued confidence in our growth prospects and our desire to
create value for our shareholders. Year to date this year we have reduced our indebtedness by
approximately 70 million and as of June 30, 2011, after giving pro forma effect to the conversion
of our convertible notes, we have increased our cash and cash equivalents by approximately 52
million and our shareholders equity by approximately 80 million. Based on current market prices,
we believe the repurchase program is in the best interests of the Company and our shareholders.
The program calls for the repurchases to be made at managements discretion in the open market
or in privately negotiated transactions from time to time in compliance with applicable laws,
rules, and regulations, including Rule 10b-18 under the Securities Exchange Act of 1934, as
amended, subject to cash requirements for other purposes, and other relevant factors, such as
trading price, trading volume and general market and business conditions.
There is no guarantee as to the exact number of shares that will be repurchased by the
Company, and the Company may discontinue repurchases at any time that the Board of Directors
determines additional repurchases are not warranted. All of the repurchases will be funded by the
Companys available working capital. As of August 1, 2011, the Company had approximately 57.0
million shares outstanding and, as of June 30, 2011, the Company had approximately 151.8 million
in cash and cash equivalents.
Our Board of Directors will periodically review the share repurchase program and may authorize
adjustments to the programs term and size. The Board may also suspend or discontinue the
repurchase program at any time.
This press release shall not constitute an offer to sell or the solicitation of an offer to
buy nor shall there be any sale of these securities in any country or state in which such offer,
solicitation, or sales of these securities would be unlawful prior to registration or qualification
under the securities laws of any such country or state.
Mercer International Inc. is a global pulp manufacturing company. To obtain further
information on the company, please visit its web site at http://www.mercerint.com.
The preceding includes forward-looking statements which involve known and unknown risks
and uncertainties which may cause our 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: the highly cyclical nature of our business, raw material costs, our level of
indebtedness, competition, foreign exchange and interest rate fluctuations, our use of derivatives,
expenditures for capital projects, environmental regulation and compliance, disruptions to our
production, market conditions and other risk factors listed from time to time in our SEC reports.
APPROVED BY:
Jimmy S.H. Lee
Chairman & President
(604) 684-1099
Chairman & President
(604) 684-1099
David M. Gandossi
Executive Vice-President &
Chief Financial Officer
(604) 684-1099
Executive Vice-President &
Chief Financial Officer
(604) 684-1099
Page 2