Verso Paper units amend exchange offer for floating-rate notes

By Angela McDaniels

Tacoma, Wash., April 11 - Verso Paper Corp. subsidiaries Verso Paper Holdings LLC and Verso Paper Inc. amended the exchange offer for their $180,216,000 of second-priority senior secured floating-rate notes due 2014, according to a company news release.

Now, all holders who tender before the offer expiration, 11:59 pm. ET on April 24, will receive the $50 early tender payment. Initially, only holders who tendered by 5 p.m. ET on April 10 were eligible to receive the early tender payment.

Holders who tender will receive $1,000 principal amount, including the $50 early tender payment, of new 9¾% secured notes due 2019 in exchange for each $1,000 principal amount of existing notes exchanged.

In addition, the issuers waived the condition requiring the receipt of tenders from the holders of more than 50% of the outstanding notes.

The exchange offer began on March 29. The issuer also began a solicitation of consents for waivers and proposed amendments to the floaters and, separately, to authorize release from the liens and security interests in the collateral securing the notes.

Holders who tender their notes in the exchange offer are deemed to have given their consents to both the proposed amendments and the collateral release.

The new notes are being offered in the United States only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and "accredited investors" as defined under Regulation D and outside the United States only to non-U.S. investors under Regulation S.

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

Verso is a Memphis-based producer of coated papers.

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