International Paper Prices USD 2.0 Billion of Senior Unsecured Notes
OREANDA-NEWS. International Paper Company today announced that it has priced USD 700 million of 3.800% senior unsecured notes due 2026, USD 600 million of 5.000% senior unsecured notes due 2035 and \\$700 million of 5.150% senior unsecured notes due 2046. The 2026, 2035 and 2046 notes were issued at a public offering price of 99.569%, 99.289% and 99.130%, respectively. The offering was made pursuant to an effective shelf registration statement.
International Paper intends to use a portion of the net proceeds from the sale of the notes to fund the purchase price of up to USD 750 million combined aggregate principal amount (subject to increase) of International Paper's outstanding 7.50% notes due 2021, 7.950% notes due 2018, 9.375% notes due 2019 and 4.750% notes due 2022 and the outstanding 6.625% notes due 2018 of Temple-Inland, Inc., a wholly-owned subsidiary of International Paper, tendered and accepted by International Paper in a tender offer commenced today.
International Paper intends to use a portion of the proceeds remaining from the sale of the notes, including if the tender offer is not consummated, to fund a contribution to its pension plans in the approximate amount of USD 750 million and for general corporate purposes, including the repayment of indebtedness.
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