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From Earlier: Verso Paper Corp. Announces New Senior Credit Facilities


Verso Paper Corp. (NYSE: VRS) announced yesterday that its wholly owned subsidiary, Verso Paper Holdings LLC, has entered into a $150 million asset-backed revolving credit facility and a $50 million cash flow credit facility. The new senior credit facilities were used to repay the outstanding indebtedness under the Company's existing $200 million revolving credit facility and will be used to provide ongoing working capital for the Company and for other general corporate purposes.

The ABL Facility and the Cash Flow Facility will have a maturity date of May 4, 2017. However, if on any of the dates that is 91 days prior to the earliest scheduled maturity of any of the Company's existing second-lien notes, senior subordinated notes or amounts outstanding under the Company's parent term loan, an aggregate principal amount in excess of $100 million of indebtedness is outstanding under any such debt security or instrument, the ABL Facility and Cash Flow Facility will mature on such earlier date unless the maturity date of such specified debt has been extended to a maturity date that is more than five years and 91 days after May 4, 2012. The Company has the right to prepay loans under the ABL Facility and the Cash Flow Facility at any time without prepayment penalty, other than customary “breakage” costs with respect to eurocurrency loans.

Posted-In: News Financing


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