Verso Paper Shareholders to Vote July 30 on Proposals Key to Its Acquisition of NewPage
PORTLAND, ME—July 17, 2014—On July 30, Verso Paper shareholders will vote on proposals key to its acquisition of NewPage, reported the Bangor Daily News. The $1.4 billion purchase would have a significant impact on employment in Maine, creating jobs for about one-third (or 2,300) of Maine’s paper millworkers at Verso’s mills in Bucksport and Jay and NewPage’s Rumford mill, the Daily News said. The annual sales of the combined company would total around $4.5 billion with manufacturing facilities in 11 states.
According to the newspaper, Verso's board of directors recommended approval of those proposals, including issuance of Verso common stock to NewPage shareholders. Dave Paterson, Verso's president and CEO, noted that more than half the company’s bondholders have already agreed to the exchange offer.
Murray, Devine & Co., a consulting firm that provides financial opinions and advisory services to many of the premier private equity, corporate, venture capital, and commercial banking institutions in the country, projected that the company would remain solvent after the proposed merger and, after five years, would be able to further reduce its debt to about $1.4 billion from $2.5 billion, reported the paper.