Verso Paper’s Bonds Tumble After Departure of CFO Robert MundySridhar Natarajan
Verso Paper Corp.’s bonds sold this year plunged to a new low as the coated-paper maker announced the departure of its chief financial officer.
Verso’s $650 million of 11.75 percent first-lien bonds due January 2019 fell 2.75 cents to 71.75 cents on the dollar to yield 24 percent at 10:39 a.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. That’s set for the lowest closing price since the sale of the securities in January.
Verso’s CFO Robert Mundy left to take a similar role with Packaging Corporation of America, according to a statement from the company earlier Wednesday. Verso, in which Leon Black’s Apollo Global Management LLC is the largest stockholder, completed its acquisition of NewPage Holdings Inc. in January. The company has high leverage, a concentrated customer base and highly competitive industry conditions, according to a report from KDP Investment Advisors Inc. last month.
Its market share and liquidity will improve through 2016, according to the report.
Kathi Rowzie, a spokeswoman for Memphis, Tennessee-based Verso, at didn’t immediately comment.
Apollo, which acquired Verso in a 2006 leveraged buyout, combined it with Miamisburg, Ohio-based NewPage in a $1.4 billion transaction.
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