Verso Paper Rallying After Announcing Talks About Potential Business Combination with NewPage
Verso Paper Corp (NYSE: VRS) is trading higher on the session after disclosing that it has held talks in order to achieve a potential business combination involving Verso and NewPage. The company stated that
According to the company's statement: "The terms of Verso's proposed transaction would provide NewPage's first-lien noteholders with $1.425 billion of value, consisting of $1.075 billion of new Verso first-lien notes, $150 million of Verso common stock, and $200 million of cash. In addition, the proposed transaction would include a 100% recovery in cash to repay NewPage's debtor-in-possession financing, a 100% recovery in cash for the allowed priority and administrative claims in the bankruptcy proceedings, a to-be-determined amount of Verso common stock for the holders of NewPage's second-lien notes, and a to-be-determined recovery for NewPage's unsecured creditors."
Verso Paper is currently trading at $1.72, a gain of $0.55 or 47.01%.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.