International Paper Company today announced that it has priced $700 million of 3.800% senior unsecured notes due 2026, $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 $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 $750 million and for general corporate purposes, including the repayment of indebtedness.
Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Mizuho Securities USA Inc., BBVA Securities Inc., BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Regions Securities LLC and SMBC Nikko Securities America, Inc. acted as joint book-running managers for the offering. Copies of the prospectus supplement and accompanying prospectus, when available, may be obtained by contacting Citigroup Global Markets Inc., c/o Broadridge Financial Solutions at 1155 Long Island Avenue, Edgewood, NY 11717, by emailing firstname.lastname@example.org or by calling (800) 831-9146, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Attn: Prospectus Department at 222 Broadway, 11th Floor, New York, NY 10038, by emailing email@example.com or by calling (800) 294-1322 or Mizuho Securities USA Inc., Attn: Debt Capital Markets at 320 Park Avenue, 12th Floor, New York, NY 10022 or by calling (866) 271-7403. This release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About International Paper
International Paper (NYSE: IP) is a global leader in packaging and paper with manufacturing operations in North America, Europe, Latin America, Russia, Asia , Africa and the Middle East. Its businesses include industrial and consumer packaging and uncoated papers. Headquartered in Memphis, Tenn., the company employs approximately 58,000 people and is strategically located in more than 24 countries serving customers worldwide. International Paper net sales for 2014 were $24 billion.