Verso, NewPage Each Receive Request for Additional Information from U.S. Department of Justice
MEMPHIS, TN and MIAMISBURG, OH—April 3, 2014—Verso Paper and NewPage Holdings today announced that they each have received a request for additional information (the "Second Requests") from the U.S. Department of Justice (the "DOJ") in connection with Verso's proposed acquisition of NewPage. The DOJ issued the Second Requests pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended ("HSR Act").
The effect of the Second Requests is to extend the waiting period imposed by the HSR Act until 30 days after Verso and NewPage have substantially complied with the Second Requests, unless that period is extended voluntarily by the parties or terminated sooner by the DOJ.
Verso and NewPage intend to cooperate fully with the DOJ in responding to the Second Requests with the goal of achieving the expiration or termination of the HSR waiting period. The completion of the transaction remains subject to HSR clearance and the satisfaction of other closing conditions.
In connection with the transaction, Verso and NewPage already have received regulatory approval from the Federal Energy Regulatory Commission and NewPage has closed its new $750 million term loan facility and new $350 million ABL facility, each of which is a condition to closing the transaction. The parties continue to expect the transaction to close during the second half of 2014.
About Verso Paper
Verso Paper is a leading North American producer of coated papers, including coated groundwood and coated freesheet, and specialty products, with $1.4 billion in net sales for the year ended December 31, 2013. Verso is headquartered in Memphis, TN, and owns paper mills in Maine and Michigan. Total production capacity generated from these mills is 1.5 million tons of paper and 930,000 tons of pulp. 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.
About NewPage Holdings
NewPage is a leading producer of printing and specialty papers in North America with $3.1 billion in net sales for the year ended December 31, 2013. NewPage is headquartered in Miamisburg, OH, and owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota and Wisconsin. These mills have a total annual production capacity of approximately 3.5 million tons of paper. The company's portfolio of paper products includes coated, supercalendered and specialty papers. These papers are used in commercial printing to create corporate collateral, magazines, catalogs, books, coupons, inserts and direct mail as well as in specialty paper applications including beverage bottle labels, food and medical packaging, pressure-sensitive labels and release liners.