Business News
International Paper Announces Expiration and Final Results of its Tender Offer for its 7.20% Notes Due 2026 and 5.50% Notes Due 2014
Wednesday 02. September 2009 - International Paper (NYSE: IP) today announced the expiration and final results of its offer to purchase up to the Maximum Tender Amount (as defined below) of its 7.20% Notes Due 2026 (the "7.20% Notes") and its 5.50% Notes Due 2014 (the "5.50% Notes"). The "Maximum Tender Amount" was $432,550,000 in aggregate principal amount, or $1,000,000,000 less the aggregate principal amount of International Paper's 7.40% Notes due 2014 (the "7.40% Notes") accepted for payment in the any and all tender offer of its 7.40% Notes that expired on August 11, 2009. International Paper refers to its offer to purchase the 7.20% Notes and 5.50% Notes as the "Maximum Tender Offer." The 7.20% Notes, the 5.50% Notes and the 7.40% Notes are referred to, collectively, as the "Securities."
As of 5 p.m., ET, on Aug. 31, 2009, the expiration date for the Maximum Tender Offer, the aggregate principal amount of 7.20% Notes tendered was $102,412,000, representing approximately 63.87% of the $160,350,000 aggregate principal amount of 7.20% Notes, and the aggregate principal amount of 5.50% Notes tendered was $63,483,000, representing approximately 58.92% of the $107,750,000 aggregate principal amount of 5.50% Notes. All of the 7.20% Notes and 5.50% Notes that were tendered have been accepted for payment by International Paper, with settlement expect to occur today.
Holders of 7.20% Notes and 5.50% Notes that were tendered at or prior to 5 p.m., ET, on Aug. 14, 2009 (the “Early Tender Date”) will receive an early tender premium (the “Early Tender Premium”). Holders of 7.20% Notes whose notes were tendered at or prior to the Early Tender Date will receive $1,080 per $1,000 principal amount of notes accepted for purchase, which includes an Early Tender Premium of $30 per $1,000 principal amount. Holders of 7.20% Notes whose notes were tendered after the Early Tender Date will receive $1,050 per $1,000 principal amount of notes accepted for purchase. Holders of 5.50% Notes whose notes were tendered before the Early Tender Date will receive $1,030 per $1,000 principal amount of notes accepted for purchase, which includes an Early Tender Premium of $30 per $1,000 principal amount. Holders of 5.50% Notes whose notes were tendered after the Early Tender Date will receive $1,000 per $1,000 principal amount of notes accepted for purchase. Holders of each of the 7.20% Notes and 5.50% Notes will receive accrued and unpaid interest from and including the last interest payment date up to, but not including, the settlement date.
The Maximum Tender Offer was made pursuant to an offer to purchase dated August 3, 2009 (the “Offer to Purchase”), which set forth a complete description of the terms of the Maximum Tender Offer.
Citi, Deutsche Bank Securities Inc. and RBS Securities Inc. served as the dealer managers for the tender offers. Global Bondholder Services Corporation served as the depositary and information agent. Persons with questions regarding the tender offers should contact Citi at (toll-free) (800) 558-3745 or (collect) (212) 723-6106, Deutsche Bank Securities Inc. at (toll-free) (866) 627-0391 or (collect) (212) 250-2955 or RBS Securities Inc. at (toll-free) (877) 297-9832 or (collect) (203) 897-6145. Requests for copies of the Offer to Purchase, related Letter of Transmittal and other related materials should be directed to Global Bondholder Services Corporation at (212) 430-3774 or (toll-free) (866) 470-3900.
None of International Paper, its board of directors, the dealer managers, the depositary and information agent or the trustees for the Securities, made any recommendation as to whether holders of the Securities should have tendered or refrained from tendering Securities. This press release is neither an offer to purchase nor a solicitation of an offer to sell the Securities or any other securities. The tender offers were made only by the Offer to Purchase and the accompanying Letter of Transmittal.