By Aleesia Forni
Virginia Beach, June 3 - International Paper Co. priced $1.6 billion of senior notes (Baa2/BBB/) in tranches due 2024 and 2044 on Tuesday, according to a market source and a company news release.
The sale included $800 million of 3.65% 10-year bonds sold at 99.626 to yield 3.695%, or Treasuries plus 110 basis points.
A second tranche was $800 million of 4.8% 30-year bonds priced at 99.479 to yield 4.883%, or Treasuries plus 140 bps.
Both tranches sold at the tight end of talk.
Deutsche Bank Securities, RBS Securities Inc., BBVA Securities Inc., BNP Paribas Securities Corp., Credit Agricole CIB, Mizuho Securities USA Inc. and SMBC Nikko were the joint bookrunners.
Proceeds will be used to fund a tender offer.
Based in Memphis, International Paper is a paper manufacturing and distributing company.
| Issuer: | International Paper Co.
|
| Issue: | Senior notes
|
| Amount: | $1.6 billion
|
| Joint bookrunners: | Deutsche Bank Securities, RBS Securities Inc., BBVA Securities Inc., BNP Paribas Securities Corp., Credit Agricole CIB, Mizuho Securities USA Inc., SMBC Nikko
|
| Trade date: | June 3
|
| Settlement date: | June 10
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Distribution: | SEC-registered
|
|
|
| 10-year notes
|
| Amount: | $800 million
|
| Maturity: | June 15, 2024
|
| Coupon: | 3.65%
|
| Price: | 99.626
|
| Yield: | 3.695%
|
| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 115 bps to 120 bps
|
|
|
| 30-year bonds
|
| Amount: | $800 million
|
| Maturity: | June 15, 2044
|
| Coupon: | 4.8%
|
| Price: | 99.479
|
| Yield: | 4.883%
|
| Spread: | Treasuries plus 140 bps
|
| Price talk: | Low-150 bps area over Treasuries
|
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