International Paper gives early tender results on waterfall offer

By Taylor Fox

New York, Sept. 22 – International Paper Co. announced the early tender results of the cash tender offer up to $700 million combined amount of its waterfall 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 news release.

Based on the $297,364,000 amount of the 3% notes due 2027 (Cusip: 460146CP6) accepted in a separate offer, the waterfall tender cap will equal $402,636,000.

As previously reported, pricing was set at 10 a.m. ET on Sept. 14 using the 0.625% Treasury due Aug. 15, 2030 plus 40 basis points for a total consideration of $1,115.33 per $1,000 of notes.

As of the early tender deadline, International Paper received tenders of each series of notes as follows:

• $275,826,000 tendered with the full amount expected to be accepted for the 2024 notes, priced 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

• $202,395,000 tendered with $126.81 million expected to be accepted for the 2026 notes, priced 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.

Because the aggregate principal amount of notes validly tendered and not validly withdrawn exceeded the waterfall tender cap, using a proration factor of approximately 62.8%, $126.81 million of the 3.8% notes validly tendered and not validly withdrawn will be accepted for purchase and settled on the waterfall early settlement date.

Notes validly tendered and not validly withdrawn by the early tender deadline and are accepted in the waterfall tender offer will be purchased, retired and cancelled on the early settlement date of Sept. 23.

For the 2024 notes and 2026 notes, the total consideration will include a $30.00 early tender premium, payable to holders who tendered their notes at or before 5 p.m. ET on Sept. 21, the early deadline.

Notes tendered under the waterfall offer may no longer be withdrawn.

No more notes will be accepted for tender.

The waterfall tender offer will expire at 11:59 p.m. ET on Oct. 5.

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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