Citibank Agents Financing to Support Verso Paper Acquisition
Verso Paper, a North American producer of coated papers, and NewPage Holdings, a producer of printing and specialty papers, announced they have entered into a definitive agreement under which Verso will acquire NewPage in a transaction valued at $1.4 billion.
Verso will finance the acquisition through $750 million in committed financing, which will be used to pay the cash portion of the merger consideration and to refinance NewPage’s existing $500 million term loan prior to closing.
According to a related 8-K filing dated January 3, 2014, the “committed financing” was provide by a lender group led by Citibank as administrative agent and lender. Other lenders shown in the filing included: Barclays Bank, Credit Suisse AG and Wells Fargo Bank.
Upon closing of the transaction, the combined company will have sales of approximately $4.5 billion and 11 manufacturing facilities located in six states. The transaction, which has been unanimously approved by the boards of directors of both companies, is expected to close in the second half of 2014, subject to regulatory approvals.