New Issue: Verso prices $325 million 11½% five-year notes at 91.968 to yield 13¾%

By Paul A. Harris

St. Louis, May 28 - Verso Paper Corp. priced a $325 million issue of 11½% five-year senior secured notes at 91.968 to yield 13¾% on Thursday, according to market sources.

The deal came in line with price talk that specified an 11½% coupon at approximately 8 points of original issue discount to yield 13¾%.

Credit Suisse and Citigroup Global Markets Inc. were joint bookrunners.

Proceeds will be used to repay $252.9 million outstanding under the company's senior secured term loan.

Verso is a Memphis-based supplier of coated papers.

Issuer:	Verso Paper Corp.
Face amount:	$325 million
Proceeds:	$298.896 million
Maturity:	July 1, 2014
Security description:	Senior secured notes
Bookrunners:	Credit Suisse, Citigroup Global Markets Inc. (joint)
Coupon:	11½%
Price:	91.968
Yield:	13¾%
Spread:	1,129 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until Jan. 1, 2012, then callable at 105.0, 103.0, par on and after Jan. 1, 2014
Equity clawback:	35% at 111.50 until Jan. 1, 2012
Trade date:	May 28
Settlement date:	June 11
Ratings:	Moody's: Ba2
	Standard & Poor's: B+
Distribution:	Rule 144A/Regulation S
Price talk:	11½% coupon at approximately 8 points of OID to yield 13¾%

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