Verso Paper plans $200 million of revolving credit facilities

By Sara Rosenberg

New York, March 7 - Verso Paper Corp. has received commitments for $200 million of five-year revolving credit facilities, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

The facilities consist of a $150 million asset-based revolver and a $50 million first-priority revolver.

Pricing on the first-priority revolver is Libor plus 450 basis points, subject to a total net first-lien leverage grid.

These commitments would be used in place of the company's previously announced proposed $100 million accounts receivable securitization facility and roughly $55 million of new and/or extended revolver commitments.

Proceeds will be used to refinance a revolver that matures on Aug. 1.

Closing on the new revolvers would take place as soon as possible after the company completes a proposed $345 million senior secured notes offering.

The new notes will be used to fund a tender offer for 11½% senior secured notes due 2014.

Verso is a Memphis, Tenn.-based producer of coated papers, including coated groundwood and coated freesheet, and specialty products.

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