Mercer International Announces Comprehensive Recapitalization Agreement with Significant Support from Noteholders and Shareholders
Globe Newswire•02/11/2026•18:49 ET
1
Key Highlights
- ➤$1.275 billion Senior Notes targeted in Mercer’s comprehensive balance-sheet restructuring
- ➤$400 million new capital fully backstopped through senior secured notes rights offering
- ➤Approximately $1.1 billion debt exchanged for equity, cutting Senior Note debt 88%
- ➤Existing shareholders receive 8.5% new common stock and 3.5% convertible preferred stock
- ➤Prepackaged Chapter 11 cases expected to complete by end of 2026; Nasdaq delisting risk
Expert Statements
Juan Carlos Bueno, President and Chief Executive Officer of Mercer International
“This transaction is a decisive step forward for Mercer and is the result of constructive and arm's-length negotiations between Mercer and key stakeholder groups. With the support of the majority of our noteholders and shareholders, we are putting in place a much stronger balance sheet and the liquidity to navigate current pulp and lumber market and geopolitical conditions. Upon emergence, we will be better positioned to invest in, and grow, our business. This is a balance sheet recapitalization only. Our mills in Germany, Canada and the United States are operating as usual, and we expect to continue to meet our commitments to customers, suppliers and employees in the ordinary course.”
Juan Carlos Bueno, President and Chief Executive Officer of Mercer International
“I want to thank our employees for their dedication and hard work, our customers, suppliers and community partners for their continued support, and our noteholders and shareholders for their confidence in Mercer’s future. Their support reflects their confidence in our people, long-term business plan and high-quality pulp, lumber and mass timber products. We look forward to completing this process efficiently and emerging as a stronger company.”
The Company Has Entered into an Agreement to Effectuate a Balance Sheet Restructuring Which Will Address $1.275 Billion of Senior Notes and Provide $400 Million of Fully Backstopped New Capital to Position Mercer for Long-Term Success
Operations will Continue in the Ordinary Course with No Impact on Customers, Suppliers and Employees
Get started
Create a free account to read the full story.