Verso NewPage debtors amend DIP facility to reallocate $5.4 million

By Caroline Salls

Pittsburgh, March 8 – Verso Corp.’s NewPage debtors entered into an amendment to the NewPage debtor-in-possession term loan facility under which NewPage Corp. repaid $5.4 million in principal amount of the loan and the lenders agreed to increase the principal amount of term loans to be funded on the final draw by the same amount, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

Verso said the repayment and reborrowing transactions were necessary to facilitate the reallocation of a portion of the loans under the NewPage term loan DIP facility to new lenders that committed to fund loans through a subscription process conducted during the period between the entry of the interim and final DIP financing orders.

According to the 8-K, NewPage borrowed the remaining $55.4 million available under the DIP facility on Monday. This amount will be used for general corporate purposes.

Verso, a Memphis-based producer of printing and specialty papers and pulp, filed bankruptcy on Jan. 26 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 16-10163.

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