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Verso Paper unit completes tender offer for 9 1/8% notes due 2014
By Marisa Wong
Madison, Wis., Feb. 9 - Verso Paper Corp. said that its subsidiary Verso Paper Holdings LLC received tenders from holders of $310,463,000 principal amount, or 92.1%, of its 9 1/8% second-priority senior secured fixed-rate notes due 2014 as of 11:59 p.m. ET on Feb. 8, the expiration date of the tender offer to purchase any and all of the outstanding notes that began on Jan. 11.
The notes were co-issued by Verso Paper Inc.
As previously announced, Verso Holdings received tenders from the holders of $310,415,000 of the 9 1/8% notes as of Jan. 25, the early tender date. After the early tender date the subsidiary received tenders from holders of an additional $48,000 of the notes.
Holders who tendered by the early tender date received $1,049.38 for each $1,000 principal amount of notes, which included a $30.00 early payment. Verso Holdings paid for the early tendered notes on Jan. 26.
Holders who tendered after the early date but by the expiration time will receive $1,019.38 per $1,000 of notes. Final settlement is expected to occur on Feb. 9.
The company will also pay accrued interest.
Verso Holdings said it plans to redeem the remaining outstanding notes.
As previously reported, the tender offer requires financing from a new issue of notes. Verso priced $360 million of 8¾% eight-year second-priority senior secured notes at 99.291 to yield 8 7/8% on Jan. 11.
Credit Suisse Securities (USA) LLC (800 820-1653 or 212 325-5912) and Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) were the dealer managers. Global Bondholder Services Corp. (212 430-3774 for brokers and banks or 866 470-3900) is the information agent.
Verso Paper is a Memphis-based producer of coated papers for media and marketing applications.
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