New Issue: Verso Paper prices $36 million add-on to 8¾% notes due 2019 at 103.25 to yield 8.052%

By Paul A. Harris

Portland, Ore, Feb. 7 - Verso Paper Holdings LLC and Verso Paper Inc. priced a $36 million add-on to their 8¾% second-priority senior secured notes (B2/B/) at 103.25 on Monday.

The pricing renders an 8.052% yield to worst.

There was no official price talk.

Credit Suisse Securities, Citigroup Global Markets Inc., Barclays Capital Inc. and Bank of America Merrill Lynch were the joint bookrunners.

The company originally sold $360 million of the notes on Jan. 11 at 99.291 to yield 8 7/8%. Total issuance is now $396 million.

Verso Paper is a Memphis, Tenn.-based coated and supercalendered papers company.

Issuer:	Verso Paper Holdings LLC and Verso Paper Inc.
Face amount:	$36 million
Proceeds:	$37.17 million
Maturity:	Feb. 1, 2019
Security description:	Add-on to 8¾% second-priority senior secured notes
Bookrunners:	Credit Suisse Securities, Citigroup Global Markets Inc., Barclays Capital Inc., Bank of America Merrill Lynch
Co-manager:	Morgan Joseph
Coupon:	8¾%
Price:	103.25
Yield:	8.052%
Spread:	478 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until Feb. 1, 2015, then callable at 104.375, 102.188, par on and after Feb. 1, 2017
Equity clawback:	35% at 108.75 until Feb. 1, 2014
Trade date:	Feb. 7
Settlement date:	Feb. 10 with accrued interest
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S
Price talk:	None
Marketing:	Quick to market
Original issue:	$360 million issue priced at 99.291 to yield 8 7/8% on Jan. 11, 2011
Total issue size:	$396 million

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