Citibank, Others Provide $200 Million to Verso Paper
Verso Paper Corp. announced 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.
Citibank acted as administrative agent in the ABL facility along with Citigroup Global Markets, Barclays Bank and Credit Suisse Securities (USA) as co-syndication agents, joint bookrunners and joint lead arrangers. PNC Bank, Siemens Financial Services and Wells Fargo Bank were the documentation agents.
Credit Suisse, Cayman Islands Branch was the administrative agent under the cash-flow facility, along with Citigroup Global Markets, Barclays Bank and Credit Suisse Securities (USA) as co-syndication agents, joint bookrunners and joint lead arrangers.
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.
Debt outstanding under the ABL facility and the cash-flow facility is secured by substantially all of the company’s assets and those of each domestic guarantor. The security interest with respect to the ABL facility will consist of a first-priority lien with respect to most inventory and accounts receivable of the company and the guarantors (the ABL Priority Collateral) and a second-priority lien with respect to all other collateral (the Notes Priority Collateral). The security interest with respect to the cash-flow facility will consist of a first-priority lien, pari passu with the Issuers’ 11.75% Senior Secured Notes due 2019, with respect to the Notes Priority Collateral and a second-priority lien with respect to the ABL Priority Collateral.
Based in Memphis, TN, Verso Paper Corp. is a North American producer of coated papers, including coated groundwood and coated freesheet, and specialty products.
Previously on abfjournal.com: