Verso Corp. Enters Into Definitive Agreement to Sell Androscoggin and Stevens Point Mills
The transaction is expected to generate net cash proceeds of approximately $336 million.
SEATTLE (Scrap Monster): Verso Corporation today announced that it has reached a definitive agreement with Spring Grove, PA-headquartered Pixelle Specialty Solutions LLC to sell its Androscoggin mill at Jay, Maine, and its Stevens Point mill at Stevens Point, Wisconsin. The transaction is valued at $400 million and is subject to regulatory and customary closing conditions. The sale is expected to be completed in the first quarter of 2020.
ALSO READ: Verso Corp. Announces Permanent Closure of Maryland Paper Mill
The transaction is expected to generate net cash proceeds of approximately $336 million, after accounting for Pixelle assumption of around $35 million of pension liabilities, working capital adjustments and payment of transaction related expenses. A significant portion of the net proceeds will be returned to Verso’s stockholders either by way of dividend or share repurchase. Approximately $54 million will be utilized to reduce a portion of its unfunded pension liability. The remaining proceeds will be used for general corporate purposes.
The financial advisor to the transaction was Houlihan Lokey, whereas Akin Gump Strauss Hauer & Feld LLP acted as the legal Counsel to the company.
Scrap Metal Prices
Copper Scrap | ||
Alternator | 0.32 | $US/Lb |
#1 Copper Bare Bright | 3.75 | $US/Lb |
Aluminum Scrap | ||
356 Aluminum Wheels (Clean) | 0.73 | $US/Lb |
6061 Extrusions | 0.64 | $US/Lb |
Steel Scrap | ||
#1 Bundle | 460.00 | $US/MT |
#1 Busheling | 480.00 | $US/MT |
Electronics Scrap |