Verso, NewPage merger back on track
The proposed merger between Verso Paper and NewPage could close later this year after Verso’s CEO said the company is in the process of restructuring its debt.
The Bangor Daily News reported that Verso, a Memphis-based company that employs around 1,450 workers at mills in Bucksport and Jay, has reached an agreement with more than half of its bondholders for an exchange offer, which would lessen the company’s debt.
Dave Paterson, Verso’s president and CEO, said in a statement to the newspaper that “completing the exchange offers is an important step toward completing our acquisition of NewPage, which, pending antitrust clearance and the exchange offers closing, is still expected to close in the second half of 2014.”
If all goes to plan, Verso will purchase NewPage for $1.4 billion, making it the single largest paper company in the state, the newspaper noted. Together, the company would employ around 2,250 workers, with approximately 850 at NewPage’s paper mill in Rumford.
Moody’s Investors Service, the debt-rating agency, downgraded some of Verso’s credit and bonds last month, saying that it may not be able to repay some of its debts. However, the agency also said the merger could benefit Verso if it goes through.
The chairman of NewPage’s holding company previously said he would likely not approve a merger with Verso if the company did not restructure much of its debt.
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