Memphis, Tennessee, USA, 26 January 2011 -- (BUSINESS WIRE) -- Verso Paper Corp. (NYSE: VRS) announced today that, pursuant to the previously announced tender offer of its subsidiary, Verso Paper Holdings LLC, Verso Holdings received tenders from the holders of USD 310,415,000 aggregate principal amount of the 9⅛% second priority senior secured fixed rate notes due 2014 issued by it and Verso Paper Inc. before the early tender payment deadline on 25 January 2011, at 5:00 p.m., Eastern Time. The tenders for the notes received by Verso Holdings before the early tender date represent approximately 92.1% of the outstanding notes.
The complete terms and conditions of the tender offer for the notes are detailed in Verso Holdings' offer to purchase dated 11 January 2011, and the related letter of transmittal (the tender offer documents). Verso Holdings currently expects to accept for payment, subject to conditions set forth in the tender offer documents, all of the notes validly tendered before the early tender date on 26 January 2011.
Each holder who validly tendered its notes before the early tender date will receive, if such notes are accepted for purchase pursuant to the tender offer, the total consideration of USD 1049.38 per USD 1000 principal amount of notes tendered, which consists of USD 1019.38 as the tender offer consideration and USD 30.00 as an early tender payment. In addition, accrued interest up to, but not including, the applicable payment date of the notes will be paid in cash on all validly tendered and accepted notes.
The tender offer is scheduled to expire at 11:59 p.m. Eastern Time on 08 February 2011, unless extended or earlier terminated (the expiration date). Because the early tender date has passed, tendered notes may no longer be withdrawn at any time, except to the extent that Verso Holdings is required by law to provide additional withdrawal rights. Holders who validly tender their notes after the early tender date will receive only the tender offer consideration and will not be entitled to receive an early tender payment if such notes are accepted for purchase pursuant to the tender offer.
All the conditions set forth in the tender offer documents remain unchanged. If any of the conditions is not satisfied, Verso Holdings may terminate the tender offer and return tendered notes not previously accepted. Verso Holdings has the right to waive any of the foregoing conditions with respect to the notes. In addition, Verso Holdings has the right, in its sole discretion, to terminate the tender offer at any time, subject to applicable law.
Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc. are acting as the dealer managers for the tender offer. Questions regarding the tender offer may be directed to Credit Suisse Securities (USA) LLC at 800-820-1653 (toll-free) or at 212-325-5912 (collect) and to Citigroup Global Markets Inc. at 800-558-3745 (toll-free) or at 212-723-6106 (collect).
Global Bondholder Services Corporation is acting as the information agent for the tender offer. Requests for the tender offer documents may be directed to Global Bondholder Services Corporation at 212-430-3774 (for brokers and banks) or 866-470-3900 (for all others).
Based in Memphis, Tennessee, Verso Paper Corp. is a leading North American producer of coated papers, including coated groundwood and coated freesheet, and supercalendered and specialty products. Verso's paper products are used primarily in media and marketing applications, including magazines, catalogs, and commercial printing applications such as high-end advertising brochures, annual reports, and direct-mail advertising.