Verso amends ABL revolver to provide for $200 million

By Rebecca Melvin

Concord, N.H., May 11 – Verso Corp. and its subsidiaries Verso Paper Holding LLC and Verso Holding LLC on May 10 entered into a third amendment to its asset-based revolving credit agreement with Wells Fargo Bank, NA as administrative agent, providing for $200 million of revolving commitments, according to an 8-K filing with the Securities and Exchange Commission.

The previous revolver provided for $350 million of revolving commitments.

The facility’s sublimit for letters of credit is $75 million and the sublimit for swingline loans is $20 million. The previous revolver had a $100 million sublimit for letters of credit and a $35 million sublimit for swingline loans.

The interest rate, maturity date and fees were unchanged. Pricing is Libor plus a margin ranging from 125 basis points to 175 bps, based on average excess availability. There is a 25-bps commitment fee, and the facility will mature on Feb. 6, 2024.

The facility requires the borrower to maintain a minimum fixed charge coverage ratio when the excess availability is less than the greater of (a) 10% of the lesser of (i) the borrowing base at such time and (ii) the total amount of revolving facility commitments at that time, less specified reserve amounts, or (b) $16 million.

Memphis-based Verso produces printing and specialty papers and pulp.

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