MIAMISBURG, Ohio, Feb. 10, 2020 /PRNewswire/ -- Verso Corporation
(NYSE: VRS) ("Verso" or the "Company") today announced that it
has completed the sale of its Androscoggin Mill, located
in Jay, Maine, and
its Stevens Point Mill, located in Stevens Point,
Wisconsin, to Pixelle Specialty
Solutions LLC ("Pixelle").
"We are pleased to have completed the sale of our Androscoggin and Stevens Point mills to Pixelle,"
said Verso Chief Executive Officer Adam St. John. "After the transaction, we will
continue to be a debt-free company with significant manufacturing
and financial flexibility, well positioned to enhance our
competitive market position, effectively respond to industry trends
and take advantage of low-risk, high-return opportunities that
should create long-term value for all of our stakeholders."
"With the sale of the Stevens
Point and Androscoggin
mills, we will now focus on the growth and enhancement of our pulp
and packaging products as well as the specialty products produced
at our remaining mills," said Verso President Mike Weinhold. "Our experienced, knowledgeable
employees combined with our flexible manufacturing capabilities and
unmatched commitment to innovation, product performance and service
position Verso as a supplier of choice in North America and beyond."
Verso is a leading North American producer of graphic and
specialty papers, packaging and pulp. The Company's Duluth,
Escanaba, Quinnesec and Wisconsin
Rapids mills have a combined annual production capacity of 2
million tons of paper.
The Company will promptly announce how it plans to utilize no
less than $225 million and up to
$282 million of the net cash proceeds
from the transaction for the benefit of stockholders.
Verso also plans to utilize a portion of the net cash proceeds
in 2020 to reduce its remaining unfunded pension liability.
Houlihan Lokey acted as financial advisor to the Company
and Akin Gump Strauss Hauer & Feld LLP acted as legal counsel
to the Company in connection with the transaction.
About Verso
Verso Corporation is the turn-to company for those looking to
successfully navigate the complexities of paper sourcing and
performance. A leading North American producer of graphic and
specialty papers, packaging and pulp, Verso provides insightful
solutions that help drive improved customer efficiency,
productivity, brand awareness and business results. Verso's
long-standing reputation for quality and reliability is directly
tied to our vision to be a company with passion that is respected
and trusted by all. Verso's passion is rooted in ethical business
practices that demand safe workplaces for our employees and
sustainable wood sourcing for our products. This passion, combined
with our flexible manufacturing capabilities and an unmatched
commitment to product performance, delivery and service, make Verso
a preferred choice among commercial printers, paper merchants and
brokers, converters, publishers and other end users. For more
information, visit us online at versoco.com.
Forward-Looking Statements
In this press release, all statements that are not purely
historical facts are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements may be
identified by the words "believe," "expect," "anticipate,"
"project," "plan," "estimate," "intend," "potential" and other
similar expressions. Forward-looking statements are based on
currently available business, economic, financial, and other
information and reflect management's current beliefs, expectations,
and views with respect to future developments and their potential
effects on Verso. Actual results could vary materially depending on
risks and uncertainties that may affect Verso and its business.
Verso's actual actions and results may differ materially from what
is expressed or implied by these statements due to a variety of
factors, including those risks and uncertainties listed under the
caption "Risk Factors" in Verso's Form 10-K for the fiscal year
ended December 31, 2018 and Form 10-Q
for the third quarter ended September 30,
2019, and from time to time in Verso's other filings with
the Securities and Exchange Commission. Verso assumes no obligation
to update any forward-looking statement made in this press release
to reflect subsequent events or circumstances or actual
outcomes.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/verso-corporation-completes-sale-of-androscoggin-and-stevens-point-mills-301001994.html
SOURCE Verso Corporation