New Issue: Verso Paper sells $25 million add-on to 11½% notes due 2014 at 109.75 to yield 8.204%

By Paul A. Harris

St. Louis, Jan. 12 - Verso Paper Holdings LLC and Verso Paper Inc. priced a $25 million add-on to their 11½% senior secured notes due July 1, 2014 at 109.75 to yield 8.204% on Tuesday, according to an informed source.

Credit Suisse Securities ran the books.

Proceeds will be used for capital expenditures and for general corporate purposes.

Verso is a Memphis-based supplier of coated papers.

Issuers:	Verso Paper Holdings LLC and Verso Paper Inc.
Face amount:	$25 million
Proceeds:	$27,438,000 (approximate)
Maturity:	July 1, 2014
Securities:	Add-on to 11½% senior secured notes
Bookrunner:	Credit Suisse Securities
Coupon:	11½%
Price:	109.75
Yield:	8.204%
Spread:	649 bps
Call features:	Callable on Jan. 1, 2012 at 105, 103, par on and after Jan. 1, 2014
Trade date:	Jan. 12
Settlement date:	Jan. 15 with accrued interest
Distribution:	Rule 144A/Regulation S
Original issue:	$325 million priced at 91.968 to yield 13¾ in May 2009
Total issue size:	$350 million

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