Verso Paper Corp. (NYSE:VRS) announced today that two of its wholly owned subsidiaries, Verso Paper Holdings LLC and Verso Paper Inc. (collectively, the “Issuers”), have launched an offer to issue up to $180.2 million aggregate principal amount of a new series of 9.75% secured notes due 2019 (the “New Notes”) in exchange for any and all of the Issuers’ outstanding $180.2 million aggregate principal amount of senior secured floating-rate notes due 2014 (the “Old Notes”).
Simultaneously, the Issuers commenced a solicitation of consents from the holders of the Old Notes to waivers of, and proposed amendments to, certain covenants in the indenture pursuant to which the Old Notes were issued (the “Proposed Amendments”), and, separately, to authorize release from the liens and security interests in the collateral securing the Old Notes (the “Collateral Release”). Holders who tender their Old Notes into the exchange offer will be deemed to have given their consents to both the Proposed Amendments and the Collateral Release with respect to those tendered Old Notes.
The Old Notes and other information relating to the exchange offer and consent solicitation are set forth in the table below.
|Consideration per $1,000 Principal Amount of Old Notes Tendered|
|CUSIP/ISIN||Outstanding Principal Amount of Old Notes||Total Consideration if Tendered Prior to or on the Early Tender Date||Exchange Consideration if Tendered after the Early Tender Date|
|92531XAJ1/ US92531XAJ19||$180,216,000||$1,000.00 principal amount of New Notes||$950.00 principal amount of New Notes|
Each holder who validly tenders its Old Notes prior to 5:00 p.m., New York City time, on April 10, 2012 (as may be extended, the “Early Tender Date”) will receive, if such Old Notes are accepted for purchase pursuant to the exchange offer, the total consideration of $1,000.00 principal amount of New Notes per $1,000.00 principal amount of Old Notes tendered, which includes an early tender payment of $50.00 per $1,000.00 principal amount of Old Notes tendered. Each Holder who does not validly tender its Old Notes prior to the Early Tender Date will only receive $950.00 principal amount of New Notes for each $1,000.00 of Old Notes tendered and accepted and will not be entitled to receive the $50.00 early tender payment.
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