IP Announces Final Results with Respect to Tender Offer
OREANDA-NEWS. International Paper Company (NYSE: IP) announced today the expiration and final results as of 11:59 p.m. on June 11, 2015 (the "Expiration Time") for its previously announced cash tender offer (the "Tender Offer") for up to USD 1.0 billion combined aggregate principal amount (the "Tender Cap") of its outstanding 7.500% Notes due 2021 (the "7.500% Notes"), 7.950% Notes due 2018 (the "7.950% Notes"), 9.375% Notes due 2019 (the "9.375% Notes") and 4.750% Notes due 2022 (the "4.750% Notes") and the outstanding 6.625% Notes due 2018 of Temple-Inland, Inc., a wholly-owned subsidiary of the company, which notes are guaranteed by the company (the "6.625% Notes" and, together with the 7.500% Notes, the 7.950% Notes, the 9.375% Notes and the 4.750% Notes, the "Notes").
Notes that have been validly tendered at or before the Expiration Time and are accepted in the Tender Offer will be purchased, retired and cancelled on the settlement date, which is expected to occur onJune 12, 2015 (the "Settlement Date"). The amounts of each series of Notes that are purchased on the Settlement Date will be determined in accordance with the acceptance priority levels and the proration procedures described in the Offer to Purchase, dated May 14, 2015 (as amended, the "Offer to Purchase").
In accordance with the terms of the Tender Offer, (1) all of the 7.500% Notes validly tendered and not validly withdrawn; (2) all of the 7.950% Notes validly tendered and not validly withdrawn; (3) all of the 6.625% Notes validly tendered and not validly withdrawn; and (4) all of the 9.375% Notes validly tendered and not validly withdrawn, will be accepted for purchase and settled on the Settlement Date. As the aggregate principal amount of Notes validly tendered and not validly withdrawn exceeded the Tender Cap, using a proration factor of approximately 17.58%, USD 78,366,000 aggregate principal amount of the 4.750% Notes validly tendered and not validly withdrawn will be accepted for purchase and settled on the Settlement Date.
As previously announced, holders whose Notes are accepted for purchase pursuant to the Tender Offer will be entitled to receive the total consideration, which includes an early tender premium of USD 30.00per USD 1,000 principal amount of Notes. Notes not accepted for purchase will be promptly returned to the tendering holder (or, if tendered through the Depositary Trust Company ("DTC"), will be promptly credited to the relevant account maintained at DTC, in accordance with DTC's procedures).
J.P. Morgan Securities LLC, BofA Merrill Lynch, Credit Agricole Securities (USA) Inc. and BNP Paribas Securities Corp. served as the dealer managers for the Tender Offer and Global Bondholder Services Corporation served as the depositary and information agent for the Tender Offer.
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