Mercer International Announces Comprehensive Recapitalization Agreement with Significant Support from Noteholders and Shareholders

Mercer International has entered into a comprehensive recapitalization agreement supported by holders of over 87% of its Senior Notes and a majority of shareholders. The deal involves exchanging approximately $1.1 billion of Senior Notes for equity (reducing debt by 88%), providing $400 million in new capital through a fully backstopped rights offering, and extending debt maturity to 2031. The company will implement the restructuring through a prepackaged Chapter 11 bankruptcy expected to be completed by end of 2026, with operations continuing normally.