Verso Paper unit holders tender 92.1% of 9 1/8% notes by early date

By Susanna Moon

Chicago, Jan. 26 - Verso Paper Corp. said its subsidiary Verso Paper Holdings LLC received tenders of $310,415,000 principal amount, or 92.1%, of its $337.08 million of 9 1/8% second-priority senior secured fixed-rate notes due 2014 as of 5 p.m. ET, the early tender date.

The notes were co-issued by Verso Paper Inc.

For each $1,000 principal amount, the company said it will pay $1,049.38, including a $30.00 early payment, for those who tendered by the early tender date.

Holders who tender after the early date but by the expiration time will receive $1,019.38 per $1,000 principal amount.

The company also will pay accrued interest.

The offer will end at 11:59 p.m. ET on Feb. 8. It began on Jan. 11.

Tendered notes may no longer be withdrawn.

The tender offer requires financing from a new issue of notes. Verso priced $360 million of 8¾% eight-year second-priority senior secured notes at 99.291 to yield 8 7/8% on Jan. 11.

Credit Suisse Securities (USA) LLC (800 820-1653 or call collect 212 325-5912) and Citigroup Global Markets Inc. (800 558-3745 or call collect 212 723-6106) are the dealer managers. Global Bondholder Services Corp. (212 430-3774 for brokers and banks or 866 470-3900) is the information agent.

Verso Paper is a Memphis-based coated and supercalendered papers company.

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