Mercer International enters advanced recapitalization talks with noteholders holding over 75% of notes outstanding
MERC•Mercer International is in advanced talks with noteholders holding more than 75% of its outstanding notes over a recapitalization and significant capital infusion. The company skipped a $25.8 million interest payment due October 1 on its 2028 notes and is using a 30-day grace period.
1. Recapitalization talks
Mercer International said it entered advanced talks with holders of its 12.875% Senior Notes due 2028 and 5.125% Senior Notes due 2029. The discussions target a comprehensive recapitalization and significant capital infusion to reduce funded debt and interest expense and bolster liquidity; the ad hoc group holds more than 75% of the notes’ aggregate outstanding principal.
2. Interest payment skipped
The company skipped its $25.8 million interest payment due October 1, 2026, on the 2028 notes and is using a 30-day grace period. Operations continue in the ordinary course while negotiations proceed on definitive terms and timing.
