By Marisa Wong
Madison, Wis., Feb. 4 - Verso Paper Corp. wholly owned subsidiaries Verso Paper Holdings LLC and Verso Paper Inc. issued $72.9 million principal amount of new 11¾% senior secured notes due 2019 on Jan. 31 in exchange for some outstanding loans, according to an 8-K filed Monday with the Securities and Exchange Commission.
The new 11¾% notes were issued to lenders under Verso Paper Finance Holdings LLC and Verso Paper Finance Holdings Inc.'s credit agreement in exchange, at an exchange rate of 85%, for roughly $85.8 million principal amount of outstanding loans and accrued interest through the closing date.
The loans involved in the exchange will be assigned to Verso Paper Finance Holdings LLC, and the lenders will cancel those loans.
The new 11¾% notes will have the same terms as and form a single class of securities with the $345 million principal amount of existing 11¾% senior secured notes due 2019 issued on March 21, 2012.
The new notes mature on Jan. 15, 2019. If, however, more than $100 million of Verso Paper's 11 3/8% senior subordinated notes due 2016 remains outstanding as of 45 days prior to their maturity, then the new 11¾% senior secured notes will mature 45 days prior to the maturity of the 11 3/8% senior subordinated notes.
The new 11¾% notes are callable in whole or in part at any time prior to Jan. 15, 2015 at par plus a make-whole premium and accrued interest.
On or after Jan. 15, 2015, the notes are callable in whole or part at 108.813. The redemption price steps down to 105.875 on Jan. 15, 2016, to 102.938 on Jan. 15, 2017 and to par on Jan. 15, 2018.
The issuers may also redeem up to 35% of the 11¾% notes, including new and existing notes, at any time before Jan. 15, 2015 at 111.75 using proceeds from qualified equity offerings.
Wilmington Trust, NA is the trustee for the notes.
The paper company is based in Memphis.
| Issuers: | Verso Paper Holdings LLC and Verso Paper Inc.
|
| Issue: | Senior secured notes
|
| Amount: | $72.9 million
|
| Maturity: | Jan. 15, 2019; if more than $100 million of 11 3/8% senior subordinated notes due 2016 remains outstanding as of 45 days prior to their maturity, then 45 days prior to maturity of 11 3/8% notes
|
| Coupon: | 11¾%, payable semiannually
|
| Calls: | In whole or part at par plus make-whole premium any time before Jan. 15, 2015; in whole or part at 108.813 on or after Jan. 15, 2015, redemption price steps down to 105.875 on Jan. 15, 2016, to 102.938 on Jan. 15, 2017 and to par on Jan. 15, 2018; up to 35% of new and existing 11¾% notes at 111.75 prior to Jan. 15, 2015 using funds from equity offerings
|
| Settlement date: | Jan. 31
|
© 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.
