Displaying items by tag: verso

Verso Corporation (OTCPink: VRSZQ) have just announced the closure of its paper mill located in Wickliffe, Kentucky.  The mill has been idle since November 2015, the result of a continuing and accelerated decline in demand for the company's coated paper products and a significant influx of imports driven by the strength of the U.S. dollar relative to foreign currencies. 

logo"After an exhaustive, but ultimately unsuccessful effort to find a buyer of our Wickliffe Mill, Verso has made the difficult decision to close the facility," said Verso President and CEO David J. Paterson.  "A handful of potential buyers expressed interest in purchasing and continuing to operate the mill, but either offered an unrealistically low purchase price or ultimately chose not to pursue the purchase.  The decision to close the Wickliffe Mill is aligned with Verso's long-held commitment to balance the supply of our products with our customers' demand for them, and is not related to the company's Chapter 11 proceedings," he said.

Approximately 310 Wickliffe Mill employees were furloughed when the mill was idled in November 2015, while a smaller group remained at the mill to maintain critical systems during the marketing process.  Both groups of employees were notified in accordance with the Worker Adjustment and Retraining Notification (WARN) Act that their last day of employment with Verso is expected to be June 4.  Represented employees will receive a severance allowance as outlined in a memorandum of agreement negotiated prior to the idling of the mill.  Salaried employees will receive a severance allowance in accordance with Verso's established severance policy.  Verso will continue to work closely with state and local officials to help Wickliffe Mill employees take full advantage of all available support resources.

"We know that the closure of the Wickliffe Mill will be a challenging and emotional experience for our employees and their families," Paterson said.  "Verso is committed to treating them with fairness, dignity and respect during this difficult time.  The closure of the mill is in no way a reflection on our Wickliffe team members, and I want to thank each and every one of them for their hard work and dedicated service to Verso and our customers."

In compliance with the WARN Act, Verso notified the state of Kentucky of the decision to close the mill.  Notwithstanding the WARN notice, Verso also told state officials that although it was unable to sell the facility as an operating paper mill, it would welcome any assistance the state might provide in identifying a buyer that would continue to operate the facility, possibly for non-papermaking uses.

Shortly after the Wickliffe Mill was idled, Verso successfully qualified paper grades formerly manufactured there for production at other mills in the company's highly flexible manufacturing system, so the mill closure will have virtually no impact on Verso's customers.  Verso will proceed immediately with all actions necessary to close the mill in a safe and environmentally responsible manner, with the shutdown expected to be complete by July 1.  The final disposition of the mill is yet to be determined.

SOURCE Verso Corporation

For further information: Media, Kathi Rowzie, Vice President, Communications and Public Affairs, 901-369-5800, This email address is being protected from spambots. You need JavaScript enabled to view it.; Investors, 901-369-4128, This email address is being protected from spambots. You need JavaScript enabled to view it.

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Verso Corporation (OTCPink: VRSZQ) have just announced a new printed promotion for its premium coated paper, Sterling® Premium, titled Sterling® Premium. Paper, Elevated.

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"This new printed brochure showcases the exceptional print quality of Sterling® Premium through detailed imagery of beautiful, mouthwatering chocolates made by Chicago chocolatier Katrina Markoff, founder of Vosges Haut-Chocolat®," said Verso Senior Vice President of Sales, Marketing and Product Development Mike Weinhold. "The promotion features many parallels between premium chocolates and premium papers, from sourcing ingredients to manufacturing to experiencing the end product, including their high quality, craftsmanship, artistry, beauty, sensory stimulation and sustainability."

Paper, Elevated. Verso uses sustainably sourced natural resources to manufacture its coated printing papers and reaches a new level in the art of papermaking to make the best of the best - Sterling® Premium. With an unparalleled combination of optics, surface quality, print performance, product breadth, sustainability, and service for the price, this great sheet made in the U.S.A. elevates the definition of premium papers to a new standard of excellence.

Chocolate, Elevated. Vosges Haut-Chocolat® uses the world's purest, highest quality ingredients in the most inspired, surprising, convention-challenging combinations. Vosges Haut-Chocolat® creations are an art form, a visual expression that uses the deep, rich neutrals of white, milk and dark chocolates as a canvas for brilliant color accents that your eyes taste before your fingers touch.

"Everything I make is a story, the result of inspiration and craft, rethinking and refining—a process that, for me, has no end," said Markoff.

Sterling® Premium has the widest and deepest offering of any premium grade, with a full line of sizes, finishes and weights to meet any need. Sterling® Premium offers true premium selection, with the industry's broadest range of basis weights — 60 lb. text through 130 lb. cover, including 7 pt. and 9 pt. caliper guaranteed products for direct mail. The product line also includes two matching digital companion products, Sterling® Premium Digital™ and Sterling® Premium Digital™ for HP Indigo, guaranteed on all digital offset, toner and HP Indigo print equipment. Sterling® Premium contains 10 percent post-consumer recycled fiber and it's Forest Stewardship Council® (FSC®), Programme for the Endorsement of Forest Certification™ (PEFC™) and Sustainable Forestry Initiative® (SFI®) tri-certified.

To learn more about Sterling® Premium, please visit our website versoco.com.

About Verso

Verso Corporation is the turn-to company for those looking to successfully navigate the complexities of paper sourcing and performance. The leading North American producer of printing and specialty papers and pulp, Verso provides insightful solutions that help drive improved customer efficiency, productivity, brand awareness and business results. Verso’s long-standing reputation for quality and reliability is directly tied to our vision to be a company with passion that is respected and trusted by all. Verso’s passion is rooted in ethical business practices that demand safe workplaces for our employees and sustainable wood sourcing for our products. This passion, combined with our flexible manufacturing capabilities and an unmatched commitment to product performance, delivery and service, make Verso a preferred choice among commercial printers, paper merchants and brokers, converters, publishers and other end users. The FSC® trademark license code for Verso Corporation is FSC® C014984. For more information, visit us online at versoco.com.

Vosges Haut-Chocolat®

Vosges Haut-Chocolat® makes its intriguing chocolate creations with the finest ingredients from around the world, sourced by founder and chocolatier Katrina Markoff. The purple house of Vosges Haut-Chocolat® and the concept of Travel the World through Chocolate™ were inspired by Katrina's journeys, which have included moving to Paris to pursue her dream of studying the culinary arts at Le Cordon Bleu, an apprenticeship in Spain under the direction of Ferran Adrià and an ongoing world tour in which she has followed her palate to Southeast Asia, Australia and other exotic, interesting destinations through the years. Katrina's fusion of indigenous spices, flowers, roots, herbs and liqueurs with premium chocolate creates a sensory experience that nurtures awareness of and appreciation for the world's diverse cultures. Vosges Haut-Chocolat®'s commitment to sustainable practices, processes and packaging is another dimension of Katrina's mission of spreading Peace, Love and Chocolate®. vosgeschocolate.com

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Verso LogoVerso Corporation (OTCQB: VRSZ) has just announced that it has sold one of its subsidiaries, Verso Androscoggin Power LLC (VAP), to Eagle Creek Renewable Energy, LLC, for a purchase price of approximately $62 million in cash. VAP owns four hydroelectric generation facilities associated with Verso's Androscoggin pulp and paper mill located in Jay, Maine. The parties contemporaneously entered into a purchase agreement and consummated the transaction.

The sale of VAP is part of Verso's efforts to raise funds to address its previously disclosed cash flow and liquidity concerns. Verso continues to evaluate other potential asset sales in connection with its exploration of various debt restructuring alternatives.

The sale of VAP is expected to have no impact on the operations of the Androscoggin mill.  The mill purchased electricity from VAP before the transaction, and it will continue to do so with VAP now under Eagle Creek's ownership. Moreover, the mill operates its own energy cogeneration facilities - consisting of two recovery boilers, a biomass boiler, three steam turbines, and three gas turbines - and also purchases electricity from Central Maine Power Company. Most importantly, the sale will not affect the Androscoggin mill's ability to manufacture its high-quality products and will not cause any interruption in serving its customers.

About Verso
Verso Corporation is the turn-to company for those looking to successfully navigate the complexities of paper sourcing and performance. The leading North American producer of printing and specialty papers and pulp, Verso provides insightful solutions that help drive improved customer efficiency, productivity, brand awareness and business results. Verso's long-standing reputation for quality and reliability is directly tied to our vision to be a company with passion that is respected and trusted by all. Verso's passion is rooted in ethical business practices that demand safe workplaces for our employees and sustainable wood sourcing for our products. This passion, combined with our flexible manufacturing capabilities and an unmatched commitment to product performance, delivery and service, make Verso a preferred choice among commercial printers, paper merchants and brokers, converters, publishers and other end users. For more information, visit us online at versoco.com.

About Eagle Creek
Eagle Creek Renewable Energy, LLC (www.eaglecreekre.com) is an owner, operator and developer of hydroelectric generation facilities and provides safe, clean, economic renewable energy to electricity consumers in the U.S. Eagle Creek currently owns and operates in excess of 130 MW from 47 facilities. Eagle Creek was founded in 2010, is privately owned and is headquartered in Morristown, New Jersey.

 

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logoA number of media outlets have erroneously reported that Verso Corporation (OTCQB: VRSZ) yesterday announced that the company is considering closing its Duluth, Minnesota, and Stevens Point, Wisconsin, mills in conjunction with its evaluation of restructuring alternatives, which is not the case.  Verso is considering the potential sale of the Duluth and Stevens Point mills.

About Verso

Verso Corporation is the turn-to company for those looking to successfully navigate the complexities of paper sourcing and performance. The leading North American producer of printing and specialty papers and pulp, Verso provides insightful solutions that help drive improved customer efficiency, productivity, brand awareness and business results. Verso's long-standing reputation for quality and reliability is directly tied to our vision to be a company with passion that is respected and trusted by all. Verso's passion is rooted in ethical business practices that demand safe workplaces for our employees and sustainable wood sourcing for our products. This passion, combined with our flexible manufacturing capabilities and an unmatched commitment to product performance, delivery and service, make Verso a preferred choice among commercial printers, paper merchants and brokers, converters, publishers and other end users.  For more information, visit us online at  www.versoco.com.

SOURCE Verso Corporation

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Verso Expands Blazer Digital(R) Line to Meet Needs of Xerox(R) iGen(R) Series of Digital Presses

logoVerso Corporation (NYSE: VRS), a leading producer of digital coated papers, announces the expansion of its Blazer Digital® economy digital coated paper offering with 10 new sheet sizes specifically designed for the Xerox® iGen4™, Xerox® iGen® 150 and new Xerox® iGen® 5 digital presses.

"Verso has been a leader in manufacturing digital papers since digital printing technology first emerged, with specialized expertise, dedicated production capacity and one of the broadest offerings of digital-specific products in the industry," states Mike Weinhold, Verso's Senior Vice President of Sales, Marketing and Product Development. "Every one of our digital products is designed specifically for digital printing."

Blazer Digital® is an economical, coated digital paper with weight and finish choices similar to conventional folio formats. Offered in gloss and satin, text and cover weights, it provides good performance on dry and liquid toner, production color laser printers and digital offset technologies.

Verso continues to focus on the digital print market and align its grade offering to better meet the needs of digital press owners. With the growth of the Xerox iGen series, Verso has added 14.33" x 26" stocking sizes in 80 lb. and 100 lb. gloss and satin text and 26" x 14.33" stocking sizes in 80 lb., 100 lb. and 110 lb. gloss and satin cover to its Blazer Digital® offering. These new sizes are stocked in our warehouses and are readily available.

"These additional sheet sizes allow customers to diversify the type and size of high-end color printed materials using one of the industry's largest digital sheet sizes," said Dennis Essary, Verso's Director for Digital Papers. "It's now possible to digitally print collateral such as six-panel 8.5" x 11" tri-fold brochures, postcards and greeting cards, or extra large book covers and jackets with Verso's new 14.33" x 26" sheet size."

Along with the Blazer Digital® economy product, Verso offers premium digital products such as Futura®, Sterling® Premium Digital and Sterling® Premium Digital for HP Indigo, each with pleasing optics, exceptional surface quality and budget-friendly pricing, and Productolith Pts. Digital® for heavier-weight packaging. Verso also produces award-winning TrueJet®, a specialized line of digital coated papers for production inkjet presses that not only optimizes quality but also is designed to deliver significant savings in ink costs. From Futura® to TrueJet®, Verso can meet your coated digital paper needs.

To learn more about Verso's entire product portfolio including digital, sheetfed, web and specialty papers, visit us at Booth 3667 from September 13 to16 at GRAPH EXPO 15, McCormick Place, Chicago, Illinois.

About Verso
Verso Corporation is the turn-to company for those looking to successfully navigate the complexities of paper sourcing and performance. The leading North American producer of printing and specialty papers and pulp, Verso provides insightful solutions that help drive improved customer efficiency, productivity, brand awareness and business results. Verso's long-standing reputation for quality and reliability is directly tied to our vision to be a company with passion that is respected and trusted by all. Verso's passion is rooted in ethical business practices that demand safe workplaces for our employees and sustainable wood sourcing for our products. This passion, combined with our flexible manufacturing capabilities and an unmatched commitment to product performance, delivery and service, make Verso a preferred choice among commercial printers, paper merchants and brokers, converters, publishers and other end users. For more information, visit us online at versoco.com.

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Wednesday, 09 September 2015 08:30

Verso Names Allen Campbell as Chief Financial Officer

logoVerso Corporation (NYSE: VRS) has just announced that Allen Campbell will become its Senior Vice President and Chief Financial Officer effective upon the commencement of his employment with Verso on September 21, 2015. Campbell has over 30 years of financial leadership experience in industrial manufacturing, including 10 years as the chief financial officer of Cooper-Standard Holdings Inc. (NYSE), the parent company of Cooper-Standard Automotive Inc., a leading global supplier of systems and components for the automotive industry.

"Allen is a strategic thinker and disciplined business leader with the knowledge, skills and experience to help Verso move through today's challenging market to a more successful future," said Verso President and CEO David J. Paterson. "Verso is pleased to welcome him to our senior leadership team."

At Cooper Standard, Campbell has been the Executive Vice President and Chief Infrastructure Officer since March 2015, and he previously served as the Executive Vice President and Chief Financial Officer from 2005 to March 2015 and in other financial and corporate leadership roles of increasing responsibility from 1998 to 2004. He previously worked at The Dow Chemical Company from 1980 to 1998 in various financial and accounting positions. Campbell has a bachelor's degree from Ball State University and an MBA in Finance from Xavier University.

About Verso
Verso Corporation is the turn-to company for those looking to successfully navigate the complexities of paper sourcing and performance. The leading North American producer of printing and specialty papers and pulp, Verso provides insightful solutions that help drive improved customer efficiency, productivity, brand awareness and business results. Verso's long-standing reputation for quality and reliability is directly tied to our vision to be a company with passion that is respected and trusted by all. Verso's passion is rooted in ethical business practices that demand safe workplaces for our employees and sustainable wood sourcing for our products. This passion, combined with our flexible manufacturing capabilities and an unmatched commitment to product performance, delivery and service, make Verso a preferred choice among commercial printers, paper merchants and brokers, converters, publishers and other end users. For more information, visit us online at versoco.com.

Forward-Looking Statements
In this press release, all statements that are not purely historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "project," "plan," "estimate," "intend" and other similar expressions. Forward-looking statements are based on currently available business, economic, financial and other information and reflect management's current beliefs, expectations and views with respect to future developments and their potential effects on Verso. Actual results could vary materially depending on risks and uncertainties that may affect Verso and its business. For a discussion of such risks and uncertainties, please refer to Verso's filings with the Securities and Exchange Commission. Verso assumes no obligation to update any forward-looking statement made in this press release to reflect subsequent events or circumstances or actual outcomes.

Investor contact:
901-369-4128
Email Contact

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Tuesday, 16 June 2015 23:41

Verso Introduces Ideal(R) Offset Web

logoVerso Corporation (NYSE: VRS), a leading North American producer of printing papers, specialty papers and pulp, today introduced Ideal® Offset, an uncoated freesheet web product.

"Verso has harmonized two of its uncoated freesheet web product offerings into one comprehensive brand, Ideal® Offset," says Mike Weinhold, Verso Senior Vice President of Sales, Marketing and Product Development. "Our customers have been asking for a more blue-white uncoated web product, so we took this opportunity to improve the shade of the product to better meet their needs."

Ideal® Offset delivers a great balance of brightness, shade, consistency and affordability in an uncoated freesheet product. Its 92 brightness and new bluer-white shade, combined with consistent on-press performance and excellent printability, makes Ideal® Offset an easy choice for a broad range of commercial printing applications such as annual reports, brochures, bulletins, catalogs, coupons, direct mail, financial documents, flyers, manuals, marketing collateral and newsletters. It is available in 50 lb. to 80 lb. smooth offset, 50 lb. to 60 lb. vellum, and 7 pt. and 9 pt. reply card.

Weinhold adds, "Ideal® Offset will be produced and serviced to the same high standards as Verso's other distinguished brands. We are committed to listening and responding to evolving marketplace needs in order to earn and keep our customers' loyalty."

For more information, please visit www.versoco.com.

About Verso

Verso Corporation is a leading North American producer of printing papers, specialty papers and pulp. Our printing papers are used primarily in commercial printing, media and marketing applications, including magazines, catalogs, books, direct mail, corporate collateral and retail inserts. Our specialty papers are used primarily in label and release liner, flexible packaging and technical paper applications. Headquartered in Memphis, Tennessee, with a business center in Miamisburg, Ohio, Verso operates eight mills strategically located in Kentucky, Maine, Maryland, Michigan, Minnesota and Wisconsin with a total annual production capacity of approximately 3.6 million tons.

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Tuesday, 17 March 2015 06:02

Verso Introduces New Coated Web Product Lineup

logoVerso Corporation (NYSE: VRS), a leading North American producer of printing papers, specialty papers and pulp, has introduced its new coated web product lineup, unmatched by any other North American supplier. Verso offers a breadth of quality coated web brands, including No. 2, No. 3 and No. 4 grades in coated freesheet and coated groundwood, as well as supercalendered SCA+ and SCA grades. Verso's lineup includes some of the most distinguished paper brands in the industry, such as Sterling® Ultra, ArborWeb Plus®, Influence®, ArborWeb® and Liberty®, as well as two new brands, Focus™ and Balance™.

Verso's two new brands, Focus™ and Balance™, will be produced to the same high standards as its other distinguished brands. Focus™, a No. 3 coated groundwood paper, is one of the best values in its category, offering cost savings without compromising performance, brightness or image reproduction. It delivers great appearance and value for quality-conscious commercial printing, catalog and magazine applications. Balance™, a No. 4 coated groundwood product, is a highly versatile and refined paper, striking the optimal combination of brightness, printability and cost. It is the perfect choice for special edition publications and is a brighter, whiter alternative to a typical No. 5 product.

"Verso's coated web product offering is an important component of our overall printing papers, specialty papers and pulp product portfolio," says Mike Weinhold, Verso's Senior Vice President of Sales, Marketing and Product Development. "We have the know-how to offer world-class products and the experience to offer world-class service. Our new coated web offering provides a unique combination of quality, consistency, reliability and flexibility that is very appealing to customers."

Verso demands that its mills meet strict quality standards to ensure delivery of consistent products day in and day out. All Verso facilities are located in the United States and its mills and warehouses are strategically located near large print markets. "Verso's strategic locations and large manufacturing base ensure our customers are reliably supplied," Weinhold says. "We have the flexibility to manufacture the same products on multiple machines, which means customers can get the paper they want when they need it. We are committed to going the extra mile to earn and keep our customers' loyalty."

Coated web papers are used primarily in commercial printing applications, including magazines, catalogs, books, direct mail and retail inserts.

For more information, please visit www.versoco.com.

About Verso
Verso Corporation is a leading North American producer of printing papers, specialty papers and pulp. Our printing papers are used primarily in commercial printing, media and marketing applications, including magazines, catalogs, books, direct mail, corporate collateral and retail inserts. Our specialty papers are used primarily in label and release liner, flexible packaging and technical paper applications. Headquartered in Memphis, Tennessee, with a business center in Miamisburg, Ohio, Verso operates eight mills strategically located in Kentucky, Maine, Maryland, Michigan, Minnesota and Wisconsin with a total annual production capacity of approximately 3.6 million tons.

Source: Verso Corporation

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logoVerso Corporation (NYSE: VRS) has announced the release of a report titled Identifying and Mapping Vernal Pools on State Forest Lands in Michigan's Upper Peninsula (UP). The report documents the results of a year-long collaboration between Verso, the Michigan Natural Features Inventory (MNFI, a program of Michigan State University Extension), the Michigan Forest Products Council (MFPC), and the Michigan Department of Natural Resources (MDNR), to identify and map vernal pools in the UP region, where Verso procures wood for its pulp and paper production. The goal of the project was to enhance the understanding of vernal pools' distribution and ecology in Michigan and how to effectively identify, manage and conserve them.

"The results of this project will greatly assist Verso, the MDNR, the MFPC and other partners with forest planning and harvesting efforts, and help facilitate sustainable forest management practices," said Jim Contino, Verso senior director, fiber supply.

Vernal pools are small, temporary bodies of water that form in shallow depressions primarily in forested areas throughout Michigan and many other states. Because vernal pools are small, isolated and dry for part of the year, they can be difficult to identify in the field, easily overlooked and unintentionally damaged or destroyed. Vernal pools are important because they provide food, water and habitat for a number of animal and plant species, including several endangered, threatened or rare species in Michigan.

"We feel the project was a success in that we were able to identify and map a significant number of potential and verified vernal pools on state forest lands that had not been documented, mapped or compiled into a single, statewide database prior to this project," said Yu Man Lee, conservation scientist/zoologist, MNFI.

Project accomplishments include:

  • Reviewing aerial imagery and mapping a total of 1,332 potential vernal pools across approximately 120,000 acres of state forest lands within two study areas located in the Baraga and Crystal Falls State Forest Areas in Houghton, Iron and Dickinson counties.
  • Surveying a total of 207 potential and new vernal pools in the field, of which 173 were potential vernal pools that had been mapped from air photos and 34 were new pools encountered in the field.
  • Verifying and mapping a total of 112 active vernal pools in the field, and identifying 22 additional potential/likely vernal pools for which more information is required to confirm their status.

"This project was possible and a success because of the partnership and combined resources of those who participated," said Debbie Begalle, assistant chief, Forest Resources Division, MDNR. "Michigan's vast natural resources -- from wildlife to plants -- will benefit from the results of this collaborative effort."

Information from this project will be provided to the MDNR to be incorporated into their forest planning and management efforts. This will help inform and facilitate vernal pool protection and management on state forest lands in Michigan's Upper Peninsula.

For a copy of the report, Identifying and Mapping Vernal Pools on State Forest Lands in Michigan's Upper Peninsula, please contact Yu Man Lee, MNFI, at This email address is being protected from spambots. You need JavaScript enabled to view it..

About Verso 
Verso Corporation is a leading North American producer of printing papers, specialty papers and pulp. Our printing papers are used primarily in commercial printing, media and marketing applications, including magazines, catalogs, books, direct mail, corporate collateral and retail inserts. Our specialty papers are used primarily in label and release liner, flexible packaging and technical paper applications. Headquartered in Memphis, Tennessee, with a business center in Miamisburg, Ohio, Verso operates eight mills strategically located in Kentucky, Maine, Maryland, Michigan, Minnesota and Wisconsin with a total annual production capacity of approximately 3.6 million tons.
About MDNR 
The Michigan Department of Natural Resources (MDNR) is committed to the conservation, protection, management, use and enjoyment of the state's natural and cultural resources for current and future generations. Michigan citizens own 4.6 million acres of state land that is managed by the MDNR. The land is managed to protect Michigan's natural and cultural resources, provide quality outdoor recreation opportunities, and foster regional economic prosperity.
About MFPC 
The Michigan Forest Products Council (MFPC) is committed to protecting, promoting, and sustaining Michigan's forest products economy by representing and advocating for Michigan's entire forest product industry value chain. MFPC's advocacy activity focuses on three strategic areas: supporting Michigan's working forests, promoting business competitiveness, and ensuring sustainability. This includes working with municipal, state and federal leadership to shape science-based, economically sound policy; advocating for increased benefits to landowners; promoting family-sustaining employment and logger safety; and providing education on sustainable forest management practices. The Michigan Forest Products Council Foundation is a non-profit, 501c3 committed to the mission to educate and inform Michiganians about the benefits of sustainable management of Michigan's natural forest resources.
About MNFI 
The Michigan Natural Features Inventory (MNFI) is a program of Michigan State University Extension. It maintains the most comprehensive database on the location and condition of threatened, endangered, and other rare species, and high-quality natural communities in the state of Michigan. MNFI also engages in applied research for the conservation of biodiversity and provides conservation planning information to decision makers.
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Thursday, 08 January 2015 07:16

Verso Completes Acquisition of NewPage

Combined Verso Better Positioned to Deliver Long-Term Value for Stakeholders in Increasingly Competitive Industry

logoVerso Corporation (NYSE: VRS), a leading North American producer of printing and specialty papers and pulp, has announced the completion of its acquisition of NewPage Holdings Inc. The transaction, valued at approximately $1.4 billion, originally was announced on January 6, 2014. With the completion of the NewPage acquisition, Verso will have approximately $3.5 billion in annual sales and approximately 5,800 employees in eight mills across six states.

"The combination of Verso and NewPage creates a stronger, more stable company with an effective strategy to weather industry headwinds and reduce operating costs, while ensuring our customers continue to benefit from the distinctive quality and service that they have come to expect from us," said David J. Paterson, Verso's president and chief executive officer. "We continue to face increased competition from electronic substitution for print and from international producers, but as a larger, more efficient organization with a sustainable capital structure, we are better positioned to deliver solid results despite the industry's continuing challenges."

The combination is expected to result in substantial cost synergies over the next 18 months. "With the complementary asset base and shared strategic focus on coated paper manufacturing, this acquisition represents a relatively low integration risk, so we remain confident that we can deliver the synergies within the expected timeframe," Paterson said.

"This combination and the related financial transactions have created value for the securities holders of both companies," said Mark Angelson, chairman of NewPage. "Our customers, our employees and the communities in which they live and work will be in able hands with the new Verso team as they navigate the turbulent waters of this challenging industry. I thank our directors and management for a job well done in safely landing our ship, and wish the Verso team well going forward."

Divestiture of Biron and Rumford Mills

In a related transaction, immediately prior to Verso's acquisition of NewPage, NewPage completed the divestiture of its paper mill in Biron, Wisconsin, and its pulp and paper mill in Rumford, Maine, to Catalyst Paper Operations Inc., a subsidiary of Catalyst Paper Corporation. The divestiture, originally announced on October 30, 2014, was undertaken pursuant to a settlement with the United States Department of Justice that enabled the NewPage acquisition to proceed.

Name Change

Promptly after the NewPage acquisition was completed, Verso changed its name from Verso Paper Corp. to Verso Corporation. The name change symbolizes Verso's intention to broaden its business platform and seek alternative revenue streams to augment its core printing papers, specialty papers and pulp segments. Verso's ticker symbol on the New York Stock Exchange (NYSE: VRS) will remain the same. Verso's website address has been changed to www.versoco.com.

Leadership and Governance

As previously announced, Verso's existing senior leadership team will continue to lead the organization, with Paterson continuing as president and CEO. The rest of Verso's senior leadership team consists of the following persons, each of whom currently is an executive of Verso:

  • Lyle J. Fellows, Senior Vice President of Manufacturing and Energy, is responsible for the mill and converting network, forest resources, manufacturing technology and energy.
  • Robert P. Mundy, Senior Vice President and Chief Financial Officer, has responsibility for all financial areas, including financial planning and analysis, tax, corporate finance and treasury functions, accounting and audit functions, and investor relations.
  • Michael A. Weinhold, Senior Vice President of Sales, Marketing and Product Development, is responsible for sales, marketing, e-commerce, new business development, planning, logistics, customer service, field technical sales, product development and pricing management.
  • Peter H. Kesser, Senior Vice President, General Counsel and Secretary, has responsibility for all legal matters, including governance and compliance.
  • Kenneth D. Sawyer, Senior Vice President of Human Resources and Communications, is responsible for all human resources and people systems, including talent management and development, labor relations, performance management, compensation and benefits, as well as communications and public affairs.
  • Benjamin Hinchman, IV, Vice President and Chief Information Officer, has responsibility for the planning, development and operation of all information technology systems.
  • Joseph C. Duffy, Vice President of Integrated Planning and Control, is responsible for the integration of the two companies and other business coordination and planning activities.

In addition, following the NewPage acquisition, Verso's board of directors increased its size from 9 to 10 directors and elected Robert M. Amen, formerly a director of NewPage, to serve as a director of Verso. Mr. Amen will serve as a Class I director whose term expires at Verso's 2015 annual meeting of stockholders. It is anticipated that Mr. Amen will be nominated for election by Verso's stockholders at such meeting to serve for a term of three years.

Adjustment of Debt Securities

Adjustable Second Lien Notes

As a result of the consummation of the NewPage acquisition, and effective as of its closing date, the provisions of the Adjustable Second Lien Notes issued by Verso Paper Holdings LLC and Verso Paper Inc. were adjusted as follows: (1) the principal amount of the notes has been adjusted such that a holder of $1,000 principal amount of notes immediately prior to the acquisition now will hold $593.75 principal amount of notes (any adjusted notes that do not bear an authorized denomination will be rounded down); (2) the maturity date of the notes has been extended from February 1, 2019, to August 1, 2020; (3) the interest rate has been adjusted such that the notes bear interest from and after the NewPage acquisition date at a rate of 10% per annum payable entirely in cash plus 3% per annum payable entirely by increasing the principal amount of the outstanding notes or by issuing additional notes; (4) the optional redemption provisions have been adjusted as provided in the indenture governing the notes; and (5) certain other terms and conditions of the notes have been modified as set forth in the indenture governing the notes. As a result of the principal adjustment, the outstanding principal amount of the Adjustable Second Lien Notes was reduced by approximately $121.6 million from about $299.4 million before the NewPage closing date to approximately $177.7 million afterwards.

Adjustable Subordinated Notes

As a result of the consummation of the NewPage acquisition, and effective as of its closing date, the provisions of the Adjustable Subordinated Notes issued by Verso Paper Holdings LLC and Verso Paper Inc. were adjusted as follows: (1) the principal amount of the notes has been adjusted such that a holder of $1,000 principal amount of notes immediately prior to the acquisition now will hold $620 principal amount of notes (any adjusted notes that do not bear an authorized denomination will be rounded down); (2) the maturity date of the notes has been extended from August 1, 2016, to August 1, 2020; (3) the interest rate has been adjusted such that the notes bear interest from and after the NewPage acquisition date at a rate of 11% per annum payable entirely in cash plus 5% per annum payable entirely by increasing the principal amount of the outstanding notes or by issuing additional notes; (4) the optional redemption provisions have been adjusted as provided in the indenture governing the notes; and (5) certain other terms and conditions of the notes have been modified as set forth in the indenture governing the notes. As a result of the principal adjustment, the outstanding principal amount of the Adjustable Subordinated Notes was reduced by approximately $38.8 million from about $102.0 million before the NewPage closing date to approximately $63.2 million afterwards.

Conversion of Warrants

As a result of the consummation of the NewPage acquisition, and effective as of its closing date, a total of 14,701,832 warrants were mandatorily converted into a like number of shares of Verso common stock, without the payment of consideration. Verso originally issued the warrants on August 1, 2014, as part of the debt exchange offers in which the Adjustable Second Lien Notes and the Adjustable Subordinated Notes were issued.

Transaction Advisors

In connection with the NewPage acquisition and related financing transactions, Evercore, Barclays and Credit Suisse served as Verso's M&A advisors, and Kirkland & Ellis LLP, Morgan, Lewis & Bockius LLP, and Paul, Weiss, Rifkind, Wharton & Garrison LLP provided legal services to Verso. Goldman, Sachs & Co. served as NewPage's M&A advisor, and Sullivan & Cromwell LLP provided legal services to NewPage.

Investor Webcast

Verso will host a webcast for investors and analysts on Thursday, January 8, 2015, starting at 10 a.m., Eastern Standard Time. Analysts and investors may access the live conference call by dialing 719-325-2320 or, within the U.S. and Canada only, 888-208-1812, access code 6031982. To register, please dial in 10 minutes before the conference call begins. The conference call and presentation materials can be accessed through Verso's website at investor.versopaper.com by navigating to the Events page, or at http://investor.versopaper.com/eventdetail.cfm?EventID=154368. A telephonic replay of the conference call can be accessed by dialing 719-457-0820 or, within the U.S. and Canada only, 888-203-1112, access code 6031982. This replay will be available starting January 8, 2015, at 1 p.m., Eastern Standard Time, and will remain available for 14 days.

About Verso

Verso Corporation is a leading North American producer of printing papers, specialty papers and pulp. Our printing papers are designed primarily for commercial printing, media and marketing applications, including magazines, catalogs, books, direct mail, corporate collateral and retail inserts. Our specialty papers are used primarily for label and release liner, flexible packaging and technical paper applications. Headquartered in Memphis, Tennessee, Verso operates eight mills strategically located in Kentucky, Maine, Maryland, Michigan, Minnesota and Wisconsin. Additional information about Verso, including our recent acquisition of NewPage Holdings Inc., is available at www.versoco.com.

Forward-Looking Statements

In this press release, all statements that are not purely historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "project," "plan," "estimate," "intend" and other similar expressions. Forward-looking statements are based on currently available business, economic, financial and other information and reflect management's current beliefs, expectations and views with respect to future developments and their potential effects on Verso. Actual results could vary materially depending on risks and uncertainties that may affect Verso and its business. For a discussion of such risks and uncertainties, please refer to Verso's filings with the Securities and Exchange Commission. Verso assumes no obligation to update any forward-looking statement made in this press release to reflect subsequent events or circumstances or actual outcomes.

For more information:

Media:

Amber Best
937-242-9093 (office)
937-344-9510 (mobile)
Email Contact

Amy Sawyer McDonald
207-213-7710
Email Contact

Investors:

Robert P. Mundy
Senior Vice President and Chief Financial Officer
901-369-4128
Email Contact

Source: Verso Corporation

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