International Paper receives tenders for $165.9 million of notes in offer for 7.2% and 5.5% notes

By Angela McDaniels

Tacoma, Wash., Sept. 1 - International Paper Co. said it accepted all of the notes tendered in its offer to purchase up to $432.55 million of its $160.35 million of 7.2% notes due 2026 and $107.75 million of 5.5% notes due 2014.

Holders tendered $102,412,000 principal amount, or 63.87%, of the 7.2% notes and $63,483,000 principal amount, or 58.92%, of the 5.5% notes.

The offer expired at 5 p.m. ET on Aug. 31.

For each $1,000 principal amount, the company will pay $1,080 for the 7.2% notes and $1,030 for the 5.5% notes. In each case, the total payment includes a $30 premium for notes tendered by Aug. 14, the early tender date.

Holders will also receive accrued interest up to but excluding the settlement date, which was expected to be Sept. 1.

The offer began Aug. 3. A tender offer for the company's $1 billion principal amount of 7.4% notes due 2014 began on that date and expired on Aug. 11.

International Paper purchased $567.45 million principal amount, or 56.75%, of the 7.4% notes in that offer. Holders received $1,100 for each $1,000 principal amount plus accrued interest to the settlement date, which was Aug. 12.

The company said the maximum tender amount for the two offers would be $1 billion. The $432.55 million cap on the offer for the 7.2% notes and 5.5% notes is equal to $1 billion minus the amount of 7.4% notes purchased.

The tender offers were 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. The proceeds from the offering and cash were used to fund the offers.

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) were the dealer managers. Global Bondholder Services Corp. (866 470-3900 or 212 430-3774) was the depositary and information agent.

The paper and packaging company is based in Memphis.

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