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Verso buys back $35.5 million floaters for $14.1 million in first half
By Angela McDaniels
Tacoma, Wash., Aug. 6 - Verso Paper Corp. said it repurchased and retired $35.5 million of Verso Paper Holdings LLC's second-priority senior secured floating-rate notes due Aug. 1, 2014 during the first six months of 2009.
The company paid $14.1 million for the notes, and $214.5 million principal amount remained outstanding as of June 30, according to its 10-Q report for the second quarter filed with the Securities and Exchange Commission on Thursday.
Of the $35.5 million, $12 million was repurchased in the first quarter and $23.5 million was repurchased in the second quarter.
The repurchases resulted in total gains of $20.5 million, net of the writeoff of unamortized debt issuance costs. In addition, the company de-designated the interest rate swap hedging interest payments on these notes and recognized losses of $800,000 related to the fair-value adjustments on the interest rate swap.
In its 10-Q report for the first quarter, Verso Paper said it might elect to retire its outstanding debt in open-market purchases, privately negotiated transactions or otherwise and that the repurchases might be funded through available cash from operations and borrowings from its credit facilities.
In Thursday's 10-Q, the company noted that all of Verso Paper Holdings' $350 million 9.13% second-priority senior secured notes due Aug. 1, 2014 and $300 million 11.38% senior subordinated notes due Aug. 1, 2016 remained outstanding at June 30.
Verso is a Memphis, Tenn.-based producer of coated papers, including coated groundwood and coated freesheet, and supercalendered and specialty products.
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