Verso Paper

Paper Industry In State of Uncertainty Due to Declining Demand of Coated Paper
June 9, 2014

The stakes are high for the nation's biggest paper-making state: The ownership uncertainties have cropped up at a precarious moment when demand for coated printing-grade paper is on the latest leg of a sharp multiyear, digitally driven decline, sparking speculation of a renewed round of mill shutdowns.

Verso Paper this year announced it wants to acquire NewPage Holdings in a deal that would combine the two biggest coated paper producers in North America—raising questions about what the merged company would do with its new excess capacity.

Commentary: A Shortage of Coated Paper? You've Got to Be Kidding!
May 15, 2014

Why are paper companies suddenly announcing price increases for coated paper, and why is the biggest printer in the United States worried about possible paper shortages?

SAPPI surprised nearly everyone late last week by announcing a $40/ton price increase on coated freesheet (CFS) in the United States. Then Verso delivered an even bigger shock this week with $40 hike not only on CFS but also on coated groundwood (CGW), which is in even greater oversupply than CFS.

Let’s look at the rather cryptic statement from a recent R.R. Donnelley filing with the Securities and Exchange Commission.

10 Reasons Coated Paper Is Ripe for Collusion, Both Legal and Illegal
March 5, 2014

The proposed merger of NewPage and Verso Paper may be on the ropes, but it has brought much attention to the oddities of the U.S. market for coated paper.

Though coated-paper companies have the means and the motive to cooperate on pricing, the same is not true for publication printers, even though they have a similar customer base.

The anonymous prosecutor’s comments, The Capitol Forum’s analysis, and my own experience inspired this list of 10 reasons the U.S. market for coated paper is prone to collusion, both legal and illegal:

Verso Paper Announces Extension of Exchange Offers, Consent Solicitations
February 21, 2014

Verso Paper announced today that two of its wholly-owned subsidiaries, Verso Paper Holdings and Verso Paper, have extended the expiration date for their previously announced exchange offers and consent solicitations with respect to their outstanding 8.75 percent Second Priority Senior Secured Notes due 2019 and 11 3/8 percent Senior Subordinated Notes due 2016 from 5:00 p.m., New York City time, on Thursday, February 20, 2014, to 5:00 p.m., New York City time, on Thursday, February 27, 2014, unless further extended. All other terms, provisions and conditions of the exchange offers and consent solicitations will remain in full force and effect.

NewPage Announces New Financing, Advancing Sale to Verso Paper
February 11, 2014

NewPage Holdings has announced that its wholly-owned subsidiary, NewPage Corp., closed on financing consisting of a new $750 million term loan facility led by Credit Suisse Securities (USA) LLC and a new $350 million ABL Facility led by Barclays Bank PLC. The closing of the Facilities is the first in a series of actions connected with the pending merger announced January 6, 2014 between Verso Paper and NewPage.

Paper Companies Headline M&A Deal Log
February 8, 2014

Paper was at the core of a wide variety of deals announced in January, and those deals are likely to impact future supply and pricing. Assuming that the decline in demand for printed products levels off or slows down at some point, as a result of the transactions announced, printers are likely to have less available supply and a more limited choice of suppliers to pick from when they are sourcing paper.

Two of the largest remaining U.S. companies that manufacture printing papers reached out to each other and plan to merge. Verso Paper announced that it was acquiring NewPage.

February 1, 2014

Commercial Printing Industry News Briefs from Printing Impressions’ February 2014 edition, including Verso Acquiring NewPage, RR Donnelley Buying Esselte