S&P cuts Verso Paper, loans & notes

Standard & Poor's said it lowered its corporate credit rating on Verso Paper Holdings LLC to CC from CCC.

The outlook is negative.

Concurrently, the agency took the following actions on the company's issue-level ratings:

• Lowered the issue-level rating on the $150 million asset-based loan facility due 2017 to CCC from B- and maintained the 1 recovery rating;

• Lowered the issue-level rating on the $50 million cash flow revolving credit facility due 2017 to CC from CCC and maintained the 3 recovery rating;

• Lowered the issue level rating on the $417.9 million first-lien notes due 2019 to CC from CCC and maintained the 3 recovery rating;

• Lowered the issue level rating on the $271.6 million senior secured notes due 2019 to C from CC and maintained the 6 recovery rating; and

• Lowered the issue level rating on the $396 million senior secured second-priority notes and $300 million senior subordinated notes to C from CC and maintained the 6 recovery rating.

"The rating action reflects the announcement that the company plans to conduct a two-part exchange for its senior secured second-priority notes and senior subordinated notes," S&P credit analyst David Kuntz said in a news release.

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