Mercer International Inc. entered into Restructuring Support Agreements with holders of approximately 87% of its Senior Notes and a majority of its common stock to implement a comprehensive balance sheet recapitalization via a prepackaged Chapter 11 plan. The transaction involves exchanging existing debt for new equity, including $150 million in takeback senior secured notes, 91.5% of new common stock, and 56.5% of new convertible preferred stock for noteholders, while existing shareholders will receive 8.5% of new common stock and 3.5% of new convertible preferred stock. The plan includes a fully backstopped $420 million rights offering of new money senior secured notes to provide liquidity. Operations will continue in the ordinary course with no expected operational impact, and the restructuring is targeted for completion by the end of calendar year 2026. Mercer International Inc. operates as a global forest products company producing pulp, lumber, mass timber, and biofuels.
