Core Viewpoint - Mercer International Inc. announced a private offering of $200 million in 12.875% senior notes due October 1, 2028, to redeem $300 million of its existing 5.500% senior notes due 2026 [1][4]. Group 1: Offering Details - The Additional Notes are priced at 103.000% of their principal amount, yielding 11.624% [1]. - The offering is expected to close on or around October 30, 2024, subject to customary closing conditions [3]. Group 2: Existing Notes - The Additional Notes are being issued under an existing indenture from September 21, 2023, which previously included $200 million of the same senior notes [2]. Group 3: Company Overview - Mercer International Inc. operates in the forest products industry with a consolidated annual production capacity of 2.1 million tonnes of pulp, 960 million board feet of lumber, 210,000 cubic meters of cross-laminated timber, 45,000 cubic meters of glulam, 17 million pallets, and 230,000 metric tonnes of biofuels [4].

NEW YORK, Oct. 21, 2024 (GLOBE NEWSWIRE) -- Mercer International Inc. (Nasdaq: MERC) (the "Company") today announced that it intends to offer for sale (the "Offering") $200 million in aggregate principal amount of its senior notes due October 1, 2028 (the "Additional Notes"). The Additional Notes will be issued as additional notes under an existing indenture dated September 21, 2023, pursuant to which the Company previously issued $200.0 million aggregate principal of 12.875% senior notes due 2028 (the "Exi ...

Core Viewpoint - Mercer International Inc. reported preliminary financial results for Q3 2024, showing an increase in revenues but continued net losses due to operational challenges [1][2]. Financial Performance - Revenues for Q3 2024 were $502.1 million, up from $499.4 million in Q2 2024 and $470.8 million in Q3 2023 [2]. - Operating income for Q3 2024 was $8.8 million, a significant improvement from a loss of $43.8 million in Q2 2024 and a loss of $3.4 million in Q3 2023 [2]. - Operating EBITDA for Q3 2024 was $50.5 million, compared to $30.4 million in Q2 2024 and $37.5 million in Q3 2023 [2][17]. - The net loss for Q3 2024 was $17.6 million, an improvement from a loss of $67.6 million in Q2 2024 and a loss of $26.0 million in Q3 2023 [2]. Liquidity Position - As of September 30, 2024, the company had cash and cash equivalents of approximately $239 million and $315 million available under revolving credit facilities, totaling about $554 million in aggregate liquidity [3]. Operational Challenges - The company faced operational constraints due to unscheduled downtimes at its mills, including 23 days at the Mercer Peace River mill and other production issues at the Stendal and Celgar mills, impacting overall pulp production [4][5]. - The company managed to reduce downtime at the Mercer Peace River mill to about 12 days for Q4 2024, with no further downtime planned [5]. Market Environment - As of September 30, 2024, NBSK list prices in Europe and North America were approximately $1,535 per ADMT and $1,735 per ADMT, respectively, showing significant increases from $1,160 and $1,270 per ADMT in the previous year [6]. - NBSK net prices in China were approximately $754 per ADMT, up from $715 per ADMT a year earlier [6]. - U.S. benchmark lumber prices for Western SPF No. 2 and better were approximately $390 per Mfbm, down from $407 per Mfbm in the previous year [7]. Upcoming Events - The company will report its full financial results for Q3 2024 on October 31, 2024, with a conference call scheduled for November 1, 2024, to discuss the results [9][10].

Group 1: Company Operations - Mercer International Inc. (MERC) has suspended operations at its Peace River mill for repairs due to a mechanical failure of the digester [1] - The company anticipates a decrease in hardwood pulp (NBHK) production by approximately 45,000 tons until operations resume, with repairs expected to be completed by mid-October 2024 [2] - The Peace River mill, operational since 1990, produces both softwood (NBSK) and hardwood pulp, and supplies surplus electricity to the Alberta market [3] Group 2: Forest Management and Resources - Peace River holds long-term forest management agreements in Alberta, allowing for the annual harvest of about 2.9 million cubic meters of hardwood and 375,000 cubic meters of softwood, with current utilization at about 44% of its hardwood allowance [4] Group 3: Financial Performance - In Q2 2024, Mercer reported an adjusted loss of $0.50 per share, an improvement from an adjusted loss of $1.48 in the same quarter the previous year, with total revenues declining by 6% year over year to $499 million [5] - The decline in revenues was attributed to lower pulp and lumber sales volumes, although this was partially offset by higher pulp sales realizations and revenues from manufactured products [5] Group 4: Stock Performance - Mercer's share price has decreased by 22.3% over the past year, contrasting with a 29.9% growth in the industry [6]

NEW YORK, Sept. 25, 2024 (GLOBE NEWSWIRE) -- Mercer International Inc. ("Mercer" or the "Company") (Nasdaq: MERC) announced today that its Peace River mill has taken downtime to complete necessary repairs to the mill's digester after experiencing a mechanical failure. The Company currently expects the repairs and related assessments will be completed in mid-October 2024, and anticipates that NBHK production at the mill will be reduced by approximately 45,000 tonnes during such period. The Company maintains ...

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NEW YORK, Aug. 22, 2024 (GLOBE NEWSWIRE) -- Mercer International Inc. (Nasdaq: MERC) today announced that Juan Carlos Bueno, President and CEO, will be presenting at the following upcoming conference: Jefferies 2024 Industrials Conference September 4 & 5, 2024 Presentation at 4:50 PM EDT, Wednesday, September 4 A copy of the presentation will be posted in the "Investors - News Releases & Presentations" section on the Company's web site (https://mercerint.com/investors/news-releases-presentations/) on the mo ...

| --- | --- | --- | |----------------------------------------------------------------------------------------------|-------|-------| | | | | | | | | | Mercer International Inc. Transforming biomass into bioproducts for a more sustainable world | | | | Q2 2024 Earnings Call August 9, 2024 | | | | Juan Carlos Bueno – President & CEO Richard Short – CFO, Executive VP & Secretary | | | | | | | Forward-looking Statements The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-lo ...

Financial Data and Key Metrics Changes - In Q2 2024, the company's EBITDA totaled $30 million, a significant decrease from $64 million in Q1 2024, primarily due to 37 days of planned maintenance downtime which adversely impacted EBITDA by approximately $60 million [3][8] - The company reported a consolidated net loss of $68 million for Q2 2024, compared to a net loss of $17 million in Q1 2024 [7][8] - Cash consumption in Q2 was about $11 million, down from approximately $40 million in Q1 [8] Business Segment Data and Key Metrics Changes - The Pulp segment contributed quarterly EBITDA of $32 million, while the Solid Wood segment contributed $3 million [3] - Lumber production for Q2 was 111 million board feet, down 12% due to planned maintenance, and lumber sales volumes decreased by 4% to 117 million board feet [7] - The Solid Wood segment's mass timber operations produced 11,000 cubic meters, an increase of about 54% from Q1 [7] Market Data and Key Metrics Changes - Average NBSK net prices in Q2 were $811 per tonne in China, $1,602 per tonne in Europe, and $1,697 per tonne in North America, reflecting increases of $66, $202, and $257 respectively from Q1 [4] - Total pulp sales volumes in Q2 decreased by 132,000 tonnes to 433,000 tonnes, driven by lower production from planned maintenance downtime and the divestment of the Cariboo mill [4][5] Company Strategy and Development Direction - The company is focused on capital investments, with planned capital spending adjusted to between $120 million for 2024, including projects at Torgau and Spokane [11][19] - The company aims to expand its mass timber capacity and expects to see significant shareholder value from this investment, with a projected increase in timber capacity by 25% upon project completion [23][24] - The company is committed to its 2030 carbon reduction targets and believes its products will play a significant role in reducing carbon emissions [21] Management's Comments on Operating Environment and Future Outlook - Management noted that the pulp markets improved significantly in Q2, particularly in Europe and North America, driven by increased demand from paper and tissue producers [12] - There is an expectation of modest downward pressure on pulp prices in Q3 due to seasonal demand but potential positive pricing pressure later in the year [13] - The company remains cautious about the economic conditions in Germany, which are expected to lag behind the rest of Europe, impacting demand for construction products [34] Other Important Information - The company recognized a noncash goodwill impairment of $34 million related to the Torgau facility due to ongoing weakness in the European lumber market [6] - The company’s liquidity position at the end of Q2 was $581 million, comprising $263 million in cash and $317 million in undrawn revolvers [8] Q&A Session Summary Question: Changes in U.S. lumber shipments post-Torgau projects - Management expects a 25% increase in timber capacity post-project completion, with U.S. shipments fluctuating based on market conditions [23][24] Question: Impact of new hybrid pulp products on NBSK - Management does not see significant threat from new hybrid products, emphasizing strong customer relationships and product quality [25][27] Question: Current state of the pulp market and pricing trends - Management noted a correction in hardwood prices but maintained that softwood remains tight in supply, with expectations for softwood prices to stabilize [29][30] Question: Economic recovery signs in Germany - Management indicated that recovery signs in Germany are still timid, with expectations for improvement taking longer than anticipated [33][34] Question: Potential asset divestitures for deleveraging - The only asset currently on the market for sale is Santanol, with no further write-downs expected [37] Question: Order file timing and pricing realization - Management clarified that pulp sales are primarily spot sales, with delivery times varying from one to two weeks [39][40] Question: Mass timber business performance and EBITDA margins - The mass timber segment is currently EBITDA positive, with expectations for significant growth in sales and margins as operations expand [41][42][43]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File No.: 000-51826 MERCER INTERNATIONAL INC. (Exact name of Registrant as specified in its charter) Washington 47-0956945 (State or other j ...