UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
SCHEDULE 14A
(Rule 14A-101)
PROXY STATEMENT PURSUANT TO SECTION 14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934
Filed by the Registrant ☒ Filed by a Party other than the Registrant ☐
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☐ | Preliminary Proxy Statement | |
☐ | Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) | |
☐ | Definitive Proxy Statement | |
☒ | Definitive Additional Materials | |
☐ | Soliciting Material under § 240.14a-12 |
VERSO CORPORATION
(Name of Registrant as Specified in its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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☐ | Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. | |||
1) | Title of each class of securities to which the transaction applies:
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2) | Aggregate number of securities to which transaction applies:
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3) | Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
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4) | Proposed maximum aggregate value of transaction:
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5) | Total fee paid:
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☐ | Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. | |||
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4) | Date Filed: |
($ in millions) (unaudited) | Six Months Ending December 31, | Fiscal Year Ending December 31, | ||||||||||||||
| 2021E | 2022E | 2023E | 2024E | 2025E | 2026E | ||||||||||
Unlevered Free Cash Flow(1) | 86 | 144 | (3) | 59 | 84 | 83 |
($ in millions) (unaudited) | Fiscal Quarter Ending December 31, | Fiscal Year Ending December 31, | ||||||||||||||
| 2021E | 2022E | 2023E | 2024E | 2025E | 2026E | ||||||||||
Unlevered Free Cash Flow(1) | 28 | 42 | 49 | 69 | 91 | 75 |
EV/Adj. EBITDAP | |||
2022E | 2023E | ||
Verso - Consensus | 3.2x | n.a. | |
Printing & Writing Companies | |||
Sappi Limited | 5.1x | 5.5x | |
Resolute Forest Products Inc. | 4.6x | 7.2x | |
Sylvamo Corporation | 4.5x | 5.2x | |
Mean | 4.7x | 6.0x | |
Median | 4.6x | 5.5x | |
Pulp Producers | |||
Canfor Pulp Products Inc. | 3.1x | 3.5x | |
Suzano S.A. | 6.6x | 7.2x | |
Mercer International Inc. | 4.7x | 4.9x | |
Mean | 4.8x | 5.2x | |
Median | 4.7x | 4.9x | |
Specialty Paper Companies | |||
Clearwater Paper Corporation | 7.1x | 5.7x | |
Neenah, Inc. | 8.4x | 7.3x | |
Mean | 7.7x | 6.5x | |
Median | 7.7x | 6.5x |
Date Announced | Target | Acquirer | TV/ LTM Adj. EBITDAP | TV/ 5-Year High Adj. EBITDAP | ||||
July 2021 | Reno De Medici S.p.A. | Affiliates of Apollo Global Management, Inc. | 6.9x | 6.5x | ||||
May 2021 | Domtar Corporation | The Paper Excellence Group | 10.1x(1) | 4.8x | ||||
February 2021 | International Paper Company - Kwidzyn Pulp Mill | Mayr-Melnhof Karton AG | 7.6x | - | ||||
September 2020 | Ahlstrom-Munksjö Oyj | Affiliates of Bain Capital Private Equity | 9.3x | 8.2x | ||||
November 2019 | Verso Corporation - Androscoggin & Stevens Point Mills | Pixelle Specialty Solutions LLC | 8.2x | - | ||||
August 2018 | P. H. Glatfelter Company - Specialty Paper Business | Pixelle Specialty Solutions LLC | 10.3x | 4.6x | ||||
May 2016 | Weyerhauser Company – Pulp Business | International Paper Company | 6.3x | 3.9x | ||||
January 2014 | NewPage Holdings Inc. | Verso Corporation | 6.4x | 3.4x | ||||
September 2013 | Boise Inc. | Packaging Corporation of America | 7.0x | 5.2x | ||||
June 2012 | Korsnäs AB | Billerud AB | 7.0x | - | ||||
Summary Adj. EBITDAP Precedent Transaction Statistics | ||||||||
Low | 6.3x | 3.4x | ||||||
Median | 7.3x | 4.8x | ||||||
Mean | 7.9x | 5.2x | ||||||
High | 10.3x | 8.2x |
(1) | Domtar’s LTM March 31, 2021 values were severely impacted by COVID-19. On a 2021E basis, the transaction multiple would be 5.7x EBITDAP. |