Verso Paper Finance Holdings, the private holding company of Memphis-based Verso Paper, is in the market for a $250 million senior unsecured term loan to fund a distribution to owner Apollo Management. Credit Suisse is leading the deal. Pricing could not be determined, nor could the size of the dividend.
CS led a $485 million deal for the company in July to fund its acquisition of International Paper's coated and supercalendered papers business. The deal consists of a six-year, $200 million revolver and a seven-year, $285 million "B" term loan priced at LIBOR plus 2% and LIBOR plus 1 3/4%, respectively.
Moody's Investors Service rated the credit Caa1 noting the dividend-related cash outflow is seen as displacing its debt reduction capacity and is not in the best interest of debt-holders. Calls to Robert Mundy, cfo, and a spokesman for Apollo were not returned.