International Paper launches tender offers for 7.4%, 7.2%, 5.5% notes

By Susanna Moon

Chicago, Aug. 3 - International Paper Co. said it began cash tender offers to purchase a portion of three series of bonds.

International Paper is offering to purchase for cash any and all of its $1 billion principal amount of 7.4% notes due 2014; its $160.35 million, less any principal amount of the 7.4% notes accepted, of its 7.2% notes due 2026; and its $107.75 million of 5.5% notes due 2014. The notes are listed in order of priority acceptance level.

The company will pay $1,100 for the 7.4% notes, $1,080 for the 7.2% notes and $1,030 for the 5.5% notes. The total payment for the 7.2% notes and 5.5% notes includes a $30 premium for notes tendered by Aug. 14, the early tender date.

The offer for the 7.4% notes will expire at 5 p.m. ET on Aug. 11. The offers for the 7.2% notes and 5.5% notes will expire at 5 p.m. ET on Aug. 31.

Funding for the offers will come from proceeds from cash and the company's previously announced offering of unsecured senior debt securities.

Holders of the 7.2% notes may put the notes on Nov. 1, 2011 at par plus accrued interest to the redemption date.

The tender offers are conditioned on the completion by International Paper of one or more public offerings of at least $500 million principal amount of unsecured senior debt securities that closes by 5 p.m. ET on Aug. 11.

The company will pay accrued interest up to the settlement date, which is expected to be one business day following the expiration date of the offers.

Tendered notes may be withdrawn until 5 p.m. ET on Aug. 11.

Citi (800 558-3745 or collect 212 723-6106), Deutsche Bank Securities Inc. (866 627-0391 or collect 212 250-2955) and RBS Securities Inc. (877 297-9832 or collect 203 897-6145) are the dealer managers. Global Bondholder Services Corp. (866 470-3900 or 212 430-3774) is the depositary and information agent.

The paper and packaging company is based in Memphis.

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