May 06, 2016 1:40 PM ET

Paper and Forest Products

Company Overview of NewPage Holdings Inc.

Company Overview

NewPage Holdings Inc. produces and sells printing and specialty papers in North America. Its portfolio of paper products include coated, supercalendered, and other uncoated and specialty products. The company also sells its excess market pulp. Its paper products are used in commercial printing to create corporate collateral, magazines, catalogs, books, coupons, inserts, and direct mail, as well as in specialty paper applications, including beverage bottle labels, food and medical packaging, pressure-sensitive labels, and release liners. The company owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, and Wisconsin with a total annual production capacity of approximately 3.5 mi...

8540 Gander Creek Drive

Miamisburg, OH 45342

United States

1,630 Employees

Phone:

937-242-9629

Key Executives for NewPage Holdings Inc.

Chief Executive Officer and President
Age: 58
Senior Vice President of Operations
Age: 49
Senior Vice President, General Counsel and Secretary
Age: 60
Chief Administrative Officer and Senior Vice President
Age: 56
Chief Accounting Officer and Controller
Age: 58
Compensation as of Fiscal Year 2015.

NewPage Holdings Inc. Key Developments

Reorganization Plan and Disclosure Statement Filed by Verso Corporation

Verso Corporation filed a joint plan of reorganization with related disclosure statement in the US Bankruptcy Court on March 26, 2016. As per the plan filed, Administrative Expense Claims, Professional Fees, NewPage DIP ABL Claims, NewPage New Money DIP Claims, Verso DIP ABL Claims, Priority Tax Claims, Priority Non-Tax Claim and Other Secured Claims will be paid in full in cash. Verso First Lien Claims will receive 50% of the new common stock as full settlement. Verso Senior Debt Claims will receive 2.85% of the new common stock as full settlement. NewPage Term Loan Claims and NewPage Roll-Up DIP Term Loan Claims will receive 47% of the new common stock as full settlement. Verso Subordinated Debt Claims will receive 0.15% of the new common stock as full settlement. General Unsecured Claims Against Asset Debtors and General Unsecured Claims Against De Minimis Asset Debtors will be paid in full in cash. Intercompany Claims will be reinstated. Section 510(b) Claims will be cancelled and will not receive any distribution. Equity Interests in Verso Corporation will be cancelled. The plan will be funded by cash in hand, issuance of new equity, Exit Term Loan Facility and Exit ABL Facility.

Final DIP Financing Approved for Verso Corporation

The US Bankruptcy Court gave an order to NewPage Corporation to obtain DIP financing on a final basis on March 2, 2016. As per the order, the debtor has been authorized to obtain a senior secured asset-based revolving credit facility in the amount of $325 million, including $100 million letter of credit sub-facility and senior secured non-amortizing term loan of $350 million, including $175 million in new money term loan and roll-up of up to $175 million from DIP lenders from time to time with Barclays Bank PLC acting as the administrative agent. The revolving DIP lenders include Barclays Bank PLC, Credit Suisse AG, BMO Harris Bank, N.A., Goldman Sachs Lending Partners LLC, Suntrust Bank, Huntington National Bank, UBS AG Stamford, City National Bank and Wells Fargo Bank, NA. The revolving DIP loan would either carry an interest rate for ABR loans of an alternate base rate plus 1.5% p.a. or for Eurocurrency Rate Loans of adjusted LIBOR plus 2.5%. The term loan loan would carry an interest rate for ABR loans of ABR plus 8.5% or for ERL loans of adjusted LIBOR plus 9.5%. The loan will also carry an additional 2% p.a. interest in the event of default. As per the terms of the DIP agreement, the loan carries an unused commitment fee of 0.375% p.a. and will increase by 2% p.a. during the continuance of event of default. The loan will also carry L/C participation fees of 2.5% p.a. initially or alternative base rate loans of 1% p.a. initially. Issuing bank fees of 0.125% p.a. will be paid to DIP L/C issuing banks. A duration fee will be charged of 0.25% on revolving loan outstanding 12 months after closing and 2% on new money term loan outstanding 210 days after closing. An upfront fees of 0.5% on revolving loan and 1.5% on new money term loan will be charged. A backstop fee of 2.5% on new money term loan will be charged. The DIP facility would mature either on 18 months after the Closing Date or 45 days after entry of the interim order if final order has not been entered or on the date of substantial consummation of the plan or termination of DIP commitments in accordance with DIP documents, whichever is earlier. The DIP facility will be used solely for working capital and general corporate purposes of the debtor. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $5 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor’s collateral.

Final DIP Financing Approved for Verso Corporation

The US Bankruptcy Court gave an order to Verso Corporation to obtain DIP financing on a final basis on March 2, 2016. As per the order, the debtor has been authorized to obtain a senior secured asset-based revolving credit facility in the amount of $100 million, including $50 million letter of credit sub-facility from DIP lenders from time to time with Citibank, N.A. acting as the administrative agent. The DIP lenders include Barclays Bank PLC, Credit Suisse AG, Cayman Islands Branch, PNC Bank, NA, Siemens Financial and Wells Fargo Bank, NA. The DIP loan would either carry an interest rate of LIBOR plus 2.5% p.a., with a LIBOR floor of 0% p.a., or an alternate base rate plus 1.5% p.a., along with an additional 2% p.a. interest in the event of default. As per the terms of the DIP agreement, the loan carries a commitment fee of 0.75% p.a. and will increase by 2% p.a. during the continuance of event of default. The loan will also carry L/C participation fees of 2.5% p.a. initially or alternative base rate loans of 1% p.a. initially. Issuing bank fees of 0.125% p.a. will be paid to DIP L/C issuing banks. The DIP facility would mature either on 18 months after the Closing Date or 45 days after entry of the interim order if final order has not been entered or on the date of substantial consummation of the plan or termination of DIP commitments in accordance with DIP documents, whichever is earlier. The DIP facility will be used solely for working capital and general corporate purposes of the debtor. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $5 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor’s collateral.

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