SUBSEQUENT EVENT

12 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

Subsequent Event

SUBSEQUENT EVENTS

Sale of Androscoggin Mill and Stevens Point Mill

On February 10, 2020, Verso completed the sale, to Pixelle, of all of the outstanding membership interests in Verso Androscoggin, LLC, an indirect wholly owned subsidiary of Verso and the entity that, as of the closing date, held all the assets primarily related to Verso’s Androscoggin Mill located in Jay, Maine and Stevens Point Mill, located in Stevens Point, Wisconsin. As consideration for the Pixelle Sale, Verso received approximately $346 million in cash, which reflects certain adjustments in respect of Verso’s estimates of cash, indebtedness and working capital of Verso Androscoggin, LLC as of the closing date, and Pixelle assumed approximately $35 million of Verso’s unfunded pension liabilities. The consideration for the sale will be subject to final post-closing adjustments pursuant to the terms of the Purchase Agreement.

Termination of Stock Rights Plan

On February 18, 2020, our Board of Directors terminated the limited duration stockholder rights plan previously adopted on June 16, 2019.

Share Repurchase Authorization and Dividend Plan

On February 26, 2020, our Board of Directors authorized up to $250 million of net proceeds from the Pixelle Sale to be used to repurchase outstanding shares of our common stock. Additionally, the Company plans to initiate a quarterly dividend of $0.10 per share starting in the second quarter of 2020.