Verso Corp. Enters Into Definitive Agreement to Sell Androscoggin and Stevens Point Mills

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.