NewPage investor lowers offer for floaters, 10% notes to $25 million

By Angela McDaniels

Tacoma, Wash., Sept. 14 - NP Investor LLC said it lowered the maximum payment amount in its offer for NewPage Corp.'s $225 million of floating-rate senior secured notes due 2012 and $806 million of 10% senior secured notes due 2012 to $25 million from $50 million.

NP Investor is an affiliate of Cerberus Capital Management, LP, which is the indirect controlling shareholder of NewPage.

The investor also extended the withdrawal deadline to 5 p.m. ET on Sept. 15 from Sept. 11 and the early participation time and offer expiration to midnight ET on Sept. 25 from Sept. 11.

The offer was originally scheduled to expire on Aug. 11, and the early participation time was to be July 28. The maximum payment amount was previously lowered to $50 million from $180 million.

Holders had tendered and not withdrawn $78.2 million of the floaters and $71.2 million of the 10% notes as of midnight ET on Sept. 11, according to a company news release.

The total payment amount per note will be determined through a modified Dutch auction. Holders who tender should specify a bid of between $430 and $530 per $1,000 principal amount of the floaters and $450 to $550 per $1,000 principal amount of the 10% notes.

The bid price includes an early participation premium of $30 per note.

For each notes series, the investor will select the bid price that will allow it to spend a total of $25 million by accepting all notes tendered at or below that price.

If the offer is oversubscribed, then holders who tendered at the selected price will be subject to proration.

Holders will also receive accrued interest through the day prior to the purchase date.

When the offer began on July 15, a second offer was being held for NewPage Holding Corp.'s $196,200,734 of floating-rate senior unsecured pay-in-kind notes due 2013 and NewPage's $200 million of 12% senior subordinated notes due 2013. That offer was later canceled.

Citigroup Global Markets Inc. (212 723-6106 or 800 558-3745) is the lead dealer manager, with Banc of America Securities LLC, Credit Suisse Securities (USA) LLC and Goldman, Sachs & Co. as additional dealer managers and Barclays Capital Inc. as co-manager.

Global Bondholder Services Corp. (212 430-3774 or 866 470-3700) is the information agent.

NewPage is a coated paper manufacturer based in Miamisburg, Ohio.

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