Verso Corporation (NYSE: VRS) announced that, in connection with the pending sale of its Androscoggin and Stevens Point mills to Pixelle Specialty Solutions LLC (the "Pixelle Transaction"), it has received requisite approval under Section 203 of the Federal Power Act from the Federal Energy Regulatory Commission.
Verso and Pixelle have now received all regulatory approvals required to consummate the Pixelle Transaction. Subject to receipt of stockholder approval at the Company's stockholder meeting scheduled to be held on January 31, 2020, Verso expects that the transaction will close in early February and that the Board, following the closing, will promptly announce how it intends to return net cash proceeds from the transaction of up to $282 million and not less than $225 million to stockholders.
Following the consummation of the Pixelle Transaction, Verso will focus on its graphic paper operations and continue to be a debt-free, streamlined company with significant financial flexibility. The Company expects that its remaining mills will continue to provide strong operating cash flow with low SG&A expenses and that Verso will be well positioned to respond to industry trends and to take advantage of opportunities with high-risk adjusted returns.
Verso urges all non-affiliated Atlas/Blue Wolf stockholders to protect their investment and vote “for” the Pixelle Transaction, in addition to "for" all seven of Verso's director nominees, on the white proxy card today.
Houlihan Lokey acted as financial advisor and Akin Gump Strauss Hauer & Feld LLP acted as legal counsel to the Company in connection with the transaction.
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