Mercer International announced it is in advanced discussions with a majority of its noteholders for a comprehensive recapitalization transaction and a significant capital infusion. In connection with these negotiations, the company has elected to utilize a 30-day grace period and did not make an approximately $25.8 million interest payment due October 1, 2026.
Key Details
- Transaction Discussions: The company is negotiating with an ad hoc group holding over 75% of its Senior Notes due 2028 and 2029. The goal is to address upcoming debt maturities, enhance liquidity, and reduce debt and interest expenses.
- Deferred Interest Payment: Mercer utilized a 30-day grace period by not making the ~$25.8 million interest payment due October 1, 2026, on its 12.875% Senior Notes due 2028. This action does not currently constitute an event of default.
- Business Operations: The company stated its pulp, lumber, and mass timber operations are continuing in the ordinary course, and it is meeting its obligations to customers, suppliers, and employees.