International Paper begins tender offers for 2024, 2026, 2027 notes

By Sarah Lizee

Olympia, Wash., Sept. 8 – International Paper Co. launched a cash tender offer for any and all of its $774,639,000 of 3% notes due 2027 (Cusip: 460146CP6) and a waterfall capped tender for its $658,942,000 of 3.65% notes due 2024 (Cusip: 460146CJ0) and $654,795,000 of 3.8% notes due 2026 (Cusip: 460146CL5), according to a press release.

Under the waterfall capped tender offers, the company is offering to purchase up to $700 million combined aggregate principal amount, less the aggregate principal amount of 3% notes purchased in the any-and-all tender offer.

Pricing will be set as follows:

• For the 2027 notes, using the 0.625% Treasury due Aug. 15, 2030 plus 40 basis points for a hypothetical total consideration of $1,114.50 per $1,000 of notes;

• For the 2024 notes, using the 0.25% Treasury due Aug. 31, 2025 plus 15 bps for a hypothetical total consideration of $1,111.36 per $1,000 of notes; and

• For the 2026 notes, using the 0.25% Treasury due Aug. 31, 2025 plus 45 bps for a hypothetical total consideration of $1,152.75 per $1,000 of notes.

For the 2024 notes and 2026 notes, the total consideration will include a $30 early tender premium, payable to holders who tender their notes at or before 5 p.m. ET on Sept. 21, the early deadline.

If $700 million or more of 3% notes are accepted for purchase in the any-and-all tender offer, then the company will not accept any tenders in the waterfall tender offer.

Tendered 3.65% notes and 3.8% notes will be accepted in order of acceptance priority level, which is 1 for the 3.65% notes and 2 for the 3.8% notes.

The any-and-all tender offer will expire at 5 p.m. ET on Sept. 14.

Any 3% notes tendered may be withdrawn at any time at or prior to the expiration time.

The waterfall tender offer will expire at 11:59 p.m. ET on Oct. 5. Any 3.65% notes and 3.8% notes tendered may be withdrawn at or prior to the early tender deadline.

Holders will also receive accrued interest.

Global Bondholder Services Corp. (866 794-2200, 212 430-3774) is the depositary and information agent.

The lead dealer managers are BNP Paribas Securities Corp. (888 210-4358, 212 841-3059, dl.us.liability.management@us.bnpparibas.com) and Credit Agricole Securities (USA) Inc. (866 807-6030, 212 261-7802).

International Paper is a packaging and paper manufacturing company based in Memphis.

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