Verso Paper to repay $151.9 million of bank debt with IPO proceeds

By Sara Rosenberg

New York, May 16 - Verso Paper Corp. plans on repaying a total of $151.9 million bank debt using proceeds from its initial public offering of common stock, according to a 424B1 filed with the Securities and Exchange Commission Friday.

Of the total amount, $137.9 million will be repaid under the Verso Paper Finance Holdings LLC $250 million senior unsecured term loan, $4 million will be repaid under the company's revolver and $10 million will be repaid under the Verso Fiber Farm LLC senior secured term loan.

In addition, $1.4 million will be used to fund a prepayment penalty related to the senior unsecured term loan.

Verso Paper priced 14 million shares of stock at $12 per share during the week of May 12.

Net proceeds from the offering, after deducting underwriting discounts and estimated offering expenses, will be $153.3 million.

Any additional amounts raised as a result of additional shares sold under an over-allotment option will be used to repay some more of the senior unsecured term loan debt.

Verso Paper is a Memphis, Tenn.-based producer of coated papers, including coated groundwood and coated freesheet and supercalendered products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.