Mercer Files Prepackaged Chapter 11 Recapitalization: $1.275B Notes Swapped, $400M New Money

summarizeSummary

Mercer signed restructuring support agreements with ~87% of its Senior Notes and ~50% of its shares for a prepackaged Chapter 11 that swaps $1.275 billion of notes for equity and raises $400 million of new money, leaving existing shareholders with 8.5% of the new common stock.

check_boxKey Events · Financing and Capital Events · MERC

• Prepackaged Chapter 11 With 87% Noteholder Support

  Restructuring support agreements cover holders of approximately 85.3% of the 2028 Notes and 88.2% of the 2029 Notes, plus about 50% of existing common stock; Chapter 11 cases must be filed by November 9, 2026.

• $1.275B Notes Swapped, $400M New Money Raised

  Senior Notes holders get 91.5% of new common stock, 56.5% of $325 million new convertible preferred and $150 million of takeback secured notes; a $420 million rights offering (inclusive of $20 million OID) yields $400 million cash, fully backstopped with a $56 million put option premium.

• Existing Equity Cancelled for 8.5% of New Common

  Current shares are cancelled on the Plan Effective Date; holders receive pro rata 8.5% of new common stock and 3.5% of new convertible preferred, subject to dilution from the management incentive plan and preferred conversion.

• Nasdaq Delisting Expected; OTC Quotation Anticipated

  Mercer expects a Nasdaq delisting determination and anticipates the existing common stock will be quoted over-the-counter, with relisting of the new common stock targeted after emergence.

auto_awesomeAnalysis · MERC · Manufacturing

Mercer has locked in support from noteholders holding roughly 87% of its $1.275 billion of Senior Notes and about 50% of its shares for a prepackaged Chapter 11 that cuts note debt by roughly 88% and injects $400 million of fresh cash. That solves the going-concern problem that has hung over the stock since the Q2 filing, but it comes at the cost of wiping out existing common holders: they are cancelled and receive only 8.5% of the new common stock and 3.5% of the new preferred. The company must file by November 9, 2026 and targets confirmation about 45 days later, with emergence by year-end 2026. Nasdaq delisting of the current shares is expected, so the equity now trades as an option on the reorganized entity rather than on the operating business.