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US-based paper manufacturer Verso Paper Holdings has raised a $375 million five-year asset-based lending facility (priced at 150bp over Libor) as part of a $595 million Chapter 11 exit financing.
Verso and competitor NewPage merged in a $1.4 billion deal in 2014 . The combined company sought Chapter 11 protection in Delaware on 26 January 2016 after delaying payments on $2.1 billion in debts and triggering defaults with lenders.
The restructuring reduces Verso's debt by $2.4 billion and includes funding to support ongoing operations and capital investment. The exit financing comprises the $375 million asset-based loan - led by Wells Fargo Bank with participation from Barclays, Citizens Financial Group, Regions Financial, SunTrust Robinson Humphrey, PNC Bank and RBC Capital Markets - and a $220 million six-year term loan (with available loan proceeds of $198 million) led by Barclays.
PJT Partners provided restructuring and transactional services, and O’Melveny & Myers provided restructuring legal counsel to the borrower..