Amit Chokshi, CFA
Hedge fund manager, long/short equity, bonds

Verso Paper: A Lotto Ticket That Might Pay Off

Verso Paper ("VRS" or the "Company") is an intriguing deep value opportunity for aggressive equity investors, as well as high-yield bond investors. The Company was IPO'd by Apollo in 2008 and like many levered IPOs at the time flopped hard. This was due to a combination of heavy debt and VRS being a producer of a paper category experiencing a secular decline. Since going public the stock has fallen from $10 in 2008 to $1, yet may now represent an interesting risk/reward for the following reasons:

  1. VRS's key paper categories may not suffer the same pressure as in the past 18 months, leading to better pricing in 2013
  2. Smart debt moves executed by VRS over the
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