NewPage tenders for up to $255 million of 12% notes, floaters, 10% notes

By Jennifer Chiou

New York, July 10 - NewPage Corp. announced the start of a cash tender offer for up to $60 million of its 12% senior subordinated notes due 2013, $150 million of its floating-rate senior secured notes due 2012 and $350 million of its 10% senior secured notes due 2012.

The company said it will accept up to a total of $255 million of the three series notes.

There is $200 million of 12% notes, $225 million of the floaters and $350 million of 10% notes outstanding. Securities are listed in the order of the priority in which the company will buy them.

NewPage is also soliciting consents to amend the indentures of the floaters and 10% notes.

The Dayton, Ohio, operator of pulp and paper mills said the offer will expire at midnight ET on Aug. 4.

For each $1,000 principal amount, the company will pay $1,100 for the 12% notes, $1,132.50 for the floaters and $1,082.50 for the 10% notes. All payouts include a $20.00 early tender premium for those who tender their securities before 5 p.m. ET on July 21, the early participation deadline.

The company will also pay accrued interest up to the purchase date.

NewPage added it may accept notes on a pro rata basis.

Goldman, Sachs & Co. is the dealer manager (call collect 212 357-7867 or 800 828-3182). Global Bondholder Services Corp. is the information agent (call collect 212 430-3774 or 866 470- 3700).

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