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