Mercer International files for Chapter 11 bankruptcy protection

BY Richard Summerfield

Canadian pulp manufacturer Mercer International Inc. has filed for Chapter 11 bankruptcy as part of a restructuring and recapitalisation deal that will slash its debt and bring in approximately $400m of new money.

The company, along with Mercer International (Texas) LLC, has entered a non-operating voluntary Chapter 11 prepackaged case in the US Bankruptcy Court for the Southern District of Texas. Completion of the recapitalisation is subject to customary conditions, including any requisite regulatory approvals, and the company is optimistic that it will be able to conclude this expedited Chapter 11 process by the end of 2026.

According to a statement announcing the recapitalisation deal, the agreement will see approximately $1.1bn of the company’s senior notes exchanged for equity, reducing existing senior note debt by approximately 88 percent, with minimal cash interest requirements over the first two years following emergence, and no bond maturities until 2031. The recapitalisation will eliminate approximately $96m of annual cash interest on the senior notes.

The company will also benefit from substantial new capital and liquidity, with $400m of new money being secured through a rights offering of new senior secured notes 100 percent backstopped by certain members of the ad hoc group of noteholders to provide significant liquidity to support Mercer’s operations post-emergence.

Going forward, existing shareholders will receive approximately 8.5 percent of the new common stock and 3.5 percent of the new convertible preferred stock of the reorganised company.

Mercer’s restructuring deal has support from holders of more than 87 percent of the outstanding principal amount of Mercer’s senior notes and a majority of the outstanding shares of its common stock.

According to Mercer, the company and its operating businesses will continue to operate in the ordinary course of business during the restructuring process. Its customers will continue to be served, vendors and unsecured claims will be paid in the ordinary course, and employee wages and benefits will continue without interruption

“This transaction is a decisive step forward for Mercer and is the result of constructive and arm’s-length negotiations between Mercer and key stakeholder groups,” said Juan Carlos Bueno, president and chief executive of Mercer. “With the support of the majority of our noteholders and shareholders, we are putting in place a much stronger balance sheet and the liquidity to navigate current pulp and lumber market and geopolitical conditions. Upon emergence, we will be better positioned to invest in, and grow, our business.

“This is a balance sheet recapitalization only. Our mills in Germany, Canada and the United States are operating as usual, and we expect to continue to meet our commitments to customers, suppliers and employees in the ordinary course,” he added.

Mr Bueno also thanked the company’s employees for their dedication and hard work, as well as its customers, suppliers, community partners, noteholders and shareholders for their continued support and confidence in Mercer’s future. He said this backing demonstrated faith in the company’s people, long-term strategy and portfolio of pulp, lumber and mass timber products, and expressed confidence that Mercer would complete the process efficiently and emerge as a stronger business.

News: Mercer International to file prepackaged Chapter 11, swap $1.1 billion of notes for equity

ADT acquired by Thrive Holdings in $7.6bn deal

BY Fraser Tennant

In a $7.6bn deal that takes the residential security firm private, ADT has been acquired by Thrive Holdings, a permanent capital holding company focused on investing in established businesses and advancing their capabilities through technology.

Under the terms of the all-cash transaction, ADT shareholders will receive $10 for each share they own – a per share price representing a premium of 52.1 percent to its 30-day volume-weighted average share price ending on 27 October 2026.

Financing commitments for the transaction have been solely provided by funds managed by affiliates of Apollo Global Management, Inc.

The transaction – which has been unanimously approved by the ADT board of directors – combines ADT’s more than 150 years of security experience, nationwide service network and customer trust with Thrive Holdings’ long-term capital and engineering capabilities.

Currently, more than 75 businesses across accounting, IT services and the built environment are part of Thrive Holdings. Following the closing of the transaction, ADT will form the foundation of Thrive Holdings’ smart home security business.

“ADT is pleased to enter into this transaction, which recognises the value built by our more than 12,000 employees and delivers an attractive cash premium to our stockholders,” said Jim DeVries, chairman, president and chief executive of ADT. “Our leadership in security is based on a legacy of trust, longstanding customer relationships and the dedication of our employees.”

Thrive Holdings intends to support ADT’s management in pursuing long-term growth through continued investment in the company’s people, products and services. Thrive Holdings’ engineering teams will work alongside ADT’s professionals to identify opportunities for technology to enhance the company’s products and services and help its teams support customers more effectively.

“ADT has spent generations showing up for people when it matters most,” said Kareem Zaki, a partner at Thrive Holdings. “We intend to build on that foundation by strengthening ADT’s technology and product capabilities, with the capital and patience to invest over decades. Our ambition is to help ADT’s teams better serve customers and offer a seamless service with more actionable information for the professionals responding.”

The transaction is expected to close in the first quarter of 2027, subject to customary closing conditions, including approval by ADT’s stockholders and receipt of US antitrust approval. The transaction is not subject to a financing condition.

Mr DeVries said: “With Thrive Holdings’ long-term capital and technology expertise, ADT will gain new opportunities to accelerate innovation, enhance the customer experience and bring greater peace of mind to even more homes and businesses.”

News: Home security firm ADT to be taken private by Thrive Holdings for $7.6 billion

RiverStreet files for Chapter 11 bankruptcy

BY Fraser Tennant

RiverStreet, a telecommunications and broadband services provider based in Virginia, has filed for Chapter 11 bankruptcy protection to facilitate an asset purchase agreement (APA) with funds managed by Oaktree Capital Management. 

The bankruptcy filing encompasses 21 entities, including RiverStreet Communications, RiverStreet Networks, RiverStreet Wireless, and several regional telephone and communications companies.

The new ownership is expected to significantly strengthen RiverStreet’s financial foundation and provide additional resources to support its long-term success, allowing the company to continue to provide reliable telecommunications and broadband services to all its customers without interruption.

Additionally, RiverStreet is currently implementing a modified build plan that refocuses its operations on its existing customers and footprint. Under this plan, RiverStreet maintains its current networks and intends to finish new builds that are nearing completion.

At the same time, the company – which serves customers in more than 67 counties in three states, primarily in North Carolina and Virginia – intends to transition certain unfinished expansion projects to other qualified broadband providers.

“The APA with Oaktree and the actions we are taking today are intended to ensure that this mission continues for years to come,” said Eric Cramer, president and chief executive of RiverStreet. “The board of directors and management team carefully considered a range of options before making this decision.”

To support the company during the court-supervised proceedings, RiverStreet has appointed Stuart Kaufman as chief restructuring officer. Mr Kaufman is a senior managing director at Areté Partners, LLC with more than three decades of financial restructuring experience and deep financial and operational expertise.

“We are confident that this is the best path for RiverStreet and our key stakeholders, including our customers and the communities where we live and work,” he continued. “We look forward to completing this process and entering a new phase as a stronger rural broadband provider with new owners, substantially less debt, and greater financial flexibility.”

In connection with the court-supervised sale process, RiverStreet has received a commitment for approximately $20m in new financing from its existing lender, CoBank, ACB. Upon court approval, this new financing, together with cash generated from ongoing operations, will support the company’s operations throughout the Chapter 11 proceedings.

Evan Kramer, senior vice president at Oaktree, added: “We look forward to building on RiverStreet’s strengths while remaining true to its mission as a leading rural telecommunications and broadband provider.”

News: RiverStreet Communications: $480 Million Awarded, $188 Million Received

EQT to acquire Range Resources in $13bn deal

BY Richard Summerfield

EQT Corporation has agreed to acquire rival Appalachian Basin producer Range Resources in a strategic, all-stock merger valued at $13bn. The combined company will have an enterprise value of $50bn, creating what EQT describes as the US’s largest and only vertically integrated natural gas producer.

Under the terms of the deal, which has been unanimously approved by the board of directors of both companies, EQT will acquire Range in an all-stock transaction. Each outstanding share of Range common stock will be exchanged for 0.987 shares of EQT common stock. As a result of the transaction, EQT’s existing shareholders are expected to own approximately 73 percent of the combined company and Range’s shareholders are expected to own approximately 27 percent.

The deal is expected to close during the first quarter of 2027, subject to the receipt of required regulatory approvals and clearances, approval of the transaction by shareholders of both EQT and Range, and the satisfaction of other customary closing conditions.

Upon the closing of the transaction, two representatives from Range, including Dennis Degner, president and chief executive of Range, will join EQT’s board of directors. EQT's executive management team will lead the combined company with headquarters remaining in Canonsburg, Pennsylvania.

Combined, EQT and Range will be able to produce more than 9 billion cubic feet of natural gas equivalent per day, the companies said. The next largest shale gas producer in the US is Expand Energy, which produces about 7.5 billion cubic feet a day.

“This transaction brings together two of the highest-quality, longest-duration asset bases in North America and creates a company uniquely positioned for the next era of natural gas,” said Toby Z. Rice, president and chief executive of EQT. “As the lowest-cost natural gas producer in the industry, supported by multiple decades of high-quality inventory, the combined company will offer exceptional resilience through commodity cycles while maintaining significant upside to strengthening natural gas fundamentals.

“Additionally, our expanded resource base solidifies EQT as the operator of choice for premium, long-term supply arrangements and provides unique growth optionality underpinned by contractual demand. We believe this combination creates a must-own energy company capable of generating durable, through-cycle free cash flow while compounding value for shareholders for decades to come,” he added.

“This combination of two highly successful operators with decades of inventory creates opportunities to build long-term value neither could fully realize independently,” said Mr Degner. “Our Board of Directors unanimously determined that this transaction will enhance Range shareholders' ability to participate in a constructive long-term natural gas and NGL macro outlook. The combined company will be uniquely positioned to capitalize on increasing demand for natural gas and liquids both domestically and internationally, delivering superior returns for investors.”

Deal: EQT to buy Range Resources in $13 billion deal to create top US gas producer

Salesforce to acquire Braze in $5.66bn deal

BY Richard Summerfield

US enterprise software company Salesforce has agreed to acquire customer engagement platform Braze in a deal worth $5.66bn. The acquisition will accelerate Salesforce’s push into artificial intelligence (AI) as companies continue to wrestle with AI’s rapid growth.

Under the terms of the deal, Salesforce will acquire Braze for approximately $47.50 per share in cash, implying an enterprise value of roughly $5.7bn. The offer represents a premium of approximately 58 percent to Braze’s prior closing price before the deal was announced.

The deal is expected to close in Salesforce’s fiscal year 2028, subject to customary closing conditions, including approval by Braze’s shareholders and receipt of required regulatory approvals. There is no anticipated change to Salesforce’s financial year 2027 guidance.

“Every interaction is an opportunity to wow your customers,” said Patrick Stokes, president of applications and marketing at Salesforce. “Most of that wow comes from knowing your customer, and responding at just the right moment. Braze was built to turn live customer behavior into personalized engagement at scale. Bringing that capability together with Salesforce Marketing Cloud, CRM, and Data 360 will deliver that wow moment in every customer interaction.”

“Braze was built on the conviction that marketers and their creativity are a brand’s ultimate competitive advantage,” said Bill Magnuson, chief executive and co-founder of Braze. “This past year we shipped at the fastest pace in our history, and BrazeAI is helping marketers get their best ideas live faster. Salesforce shares our commitment to marketers, and we’ll continue building as Braze and investing in the Braze community of customers and partners who built this company with us. Salesforce’s platform will help us innovate faster and together we’ll help marketers around the world build deeper, more lasting relationships with their customers.”

Braze is an AI marketing and personalisation company dedicated to ‘amplifying’ companies of any size, in any industry, according to its website. The company has around 2770 customers, including Canva, HBO Max, KFC and Venmo. According to a statement announcing the deal, Braze helps marketers strengthen customer relationships by responding to customer behaviour in real time, coordinating personalised experiences on platforms including mobile apps, websites, email and WhatsApp.

The Braze acquisition is the latest in a series of deals struck by Salesforce, which in June said it was due to purchase AI customer service platform Fin for $3.6bn. Shortly after, the company announced it had closed on its acquisition of m3ter, a metering and rating platform for consumption-based monetisation. In late September, Salesforce also announced the $2bn acquisition of AI-powered customer research and human simulation startup Listen Labs.

News: Salesforce deepens AI bets with $5.66 billion Braze deal