Verso Paper to start roadshow Monday for $900 million of notes in three tranches

By Paul A. Harris

St. Louis, July 13 - Verso Paper Holdings and Verso Paper Inc. plan to start a roadshow on Monday for $900 million of notes in three tranches, according to market sources.

The company plans to sell $600 million of eight-year second-lien senior secured notes (B1/B+) in fixed-rate and floating-rate tranches. The fixed-rate notes will come with four years of call protection while the floating-rate notes will come with two years of call protection. Tranche sizes remain to be determined.

Verso is also offering a $300 million tranche of 10-year senior subordinated notes (B3/B-), which are non-callable for five years.

The notes are expected to price during the week of July 24.

Credit Suisse and Lehman Brothers are joint bookrunners for the Rule 144A offering.

Proceeds, along with a $485 million senior secured credit facility, will be used to fund the $1.4 billion acquisition of International Paper Co.'s coated and supercalendered papers business by Apollo Management.

The Stamford, Conn.-based company is a producer and distributor of printing paper, packaging, forest products and chemical products.

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