Verso Exit Financing Approval Sought


Verso filed with the U.S. Bankruptcy Court a redacted motion for entry of an order authorizing the Debtors to enter into and perform under engagement and fee letters relating to exit financing between Verso Paper Holdings and Wells Fargo Bank and pay fees and expenses in connection therewith.

Documents filed with the Court explain, “The Plan provides for the Debtors to enter into two exit financing facilities: the Exit ABL Facility and the Exit Term Facility, pursuant to which the Debtors expect to have access to between $575 and $650 million in financing, which is necessary to refinance the Debtors’ existing DIP Facilities, fund distributions under the Plan and provide post-emergence liquidity to the reorganized Debtors.”

The motion continues, “Wells Fargo will use commercially reasonable efforts to assemble a syndicate of financial institutions…to provide the necessary asset-based revolving financing commitments of up to $375,000,000. The Debtors will provide to Wells Fargo a deposit of $250,000 to be applied to such reimbursable fees, costs and expenses. Barclays agrees to use commercially reasonable efforts to arrange a syndicate of lenders (which shall not include certain ineligible institutions specified by the Debtors) to provide the Exit Term Loan Facility in the anticipated principal amount of $200,000,000.”

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