Black’s NewPage Retreat Inflicts Bond Losses
NewPage Corp. bondholders, speculating the company needs no help in boosting earnings in a hobbled paper market, have seen the value of their holdings dwindle by $690 million since turning down a buyout offer in May from a rival controlled by Leon Black.
The largest U.S. coated-paper maker’s $1.77 billion of 11.375 percent notes due December 2014 fell 4.5 cents yesterday to 64 cents on the dollar. A day earlier Verso Paper Corp. said it ended merger discussions with the Miamisburg, Ohio-based company.
That was the biggest drop since March and put the bonds, which touched 60 cents, further below the estimated 103 cents Verso offered in May.