Verso Paper pays down $116.1 million of debt in first three quarters

By Angela McDaniels

Tacoma, Wash., Nov. 5 - Verso Paper Corp. spent $48.2 million to repurchase $116.1 million of debt during the first nine months of 2009, according to its 10-Q report for the third quarter filed with the Securities and Exchange Commission on Thursday.

During the nine months ended Sept. 30, the company:

• Repurchased and retired $12.9 million of Verso Paper Holdings LLC's 9 1/8% second-priority senior secured notes due 2014 for a total purchase price of $7.9 million, which resulted in a net gain of $4.7 million;

• Repurchased and retired $61.8 million of Verso Holdings' second-priority senior secured floating-rate notes due 2014 for a total purchase price of $30.1 million, which resulted in a net gain of $30.2 million.; and

• Repurchased $41.4 million of Verso Paper Finance Holdings LLC's senior unsecured floating-rate term loan due 2013 for $10.2 million, which resulted in a net gain of $30.5 million.

For the floating-rate notes, $12 million was repurchased in the first quarter, $23.5 million was repurchased in the second quarter and $26.3 million was repurchased in the third quarter.

For the term loan, $26.7 million was repurchased in the second quarter and $14.7 million was repurchased in the third quarter.

As of Sept. 30, $337 million of the 9 1/8% notes, $188 million of the floating-rate notes and $78.1 million of the term loan remained outstanding.

Verso is a Memphis, Tenn.-based producer of coated papers.

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