International Paper Announces Price Determination with Respect to Waterfall Tender Offer for its Outstanding 3.650% due 2024 and 3.800% Notes due 2026

Rhea-AI Summary

International Paper Company (NYSE: IP) announced pricing terms for its Waterfall Tender Offer to purchase up to $700 million of outstanding 3.650% Notes due 2024 and 3.800% Notes due 2026. The Reference Yield, determined by Lead Dealer Managers, is 0.263%. Accrued interest will also be paid. The Early Tender Deadline was on September 21, 2020, and due to high demand, no additional Notes will be accepted beyond the Waterfall Tender Cap. The tender offer is subject to certain conditions outlined in the Offer to Purchase.

Positive

• Successful pricing of the Waterfall Tender Offer for up to $700 million.
• Accrued and unpaid interest will be paid to holders of accepted Notes.

Negative

• Aggregate principal amount of tendered Notes exceeded the Waterfall Tender Cap, limiting future acceptance.

MEMPHIS, Tenn., Sept. 22, 2020 /PRNewswire/ -- International Paper Company (NYSE: IP) (the "Company") announced today certain pricing terms for its previously announced cash tender offer (the "Waterfall Tender Offer") for up to $700 million combined aggregate principal amount, less the aggregate principal amount of its outstanding 3.000% Notes due 2027 purchased in a separate offer (the "Waterfall Tender Cap"), of its outstanding 3.650% Notes due 2024 (the "3.650% Notes") and 3.800% Notes due 2026 (the "3.800% Notes" and, together with the 3.650% Notes, the "Notes").

The Reference Yield was determined by the Lead Dealer Managers, based on the bid-side price of the Reference U.S. Treasury Security as of 10:00 a.m., New York City time, on September 22, 2020. Holders whose Notes are accepted for purchase pursuant to the Waterfall Tender Offer will also receive accrued and unpaid interest on such Notes from the last interest payment date for such Notes to, but excluding, the applicable settlement date for the Waterfall Tender Offer.

Title of Security	CUSIP	Acceptance Priority Level	Reference U.S. Treasury Security	Reference Yield	Fixed Spread	Early Tender Premium	Total Consideration(2)
3.650% Notes due 2024	460146 CJ0	1	0.250% due August 31, 2025	0.263%	15 bps	$30	$1,111.66
3.800% Notes due 2026	460146 CL5	2	0.250% due August 31, 2025	0.263%	45 bps	$30	$1,153.18

(1)	Payable for each $1,000 principal amount of applicable Notes validly tendered at or prior to the Early Tender Deadline and accepted for purchase by us and includes the Early Tender Premium.  Holders that tender after the Early Tender Deadline, but at or prior to the Waterfall Expiration Time will not receive the Early Tender Premium.  In addition, holders whose Notes are accepted will also receive interest on such Notes accrued to the applicable settlement date.

Holders of Notes that were validly tendered and not validly withdrawn at or before 5:00 p.m., New York City time, on September 21, 2020 (the "Early Tender Deadline") and whose Notes are accepted for purchase will receive the applicable Total Consideration (as defined in the Offer to Purchase), which is based on the Reference Yield plus the Fixed Spread as set forth in the table above, for such Notes. Because the aggregate principal amount of Notes validly tendered and not validly withdrawn at or before the Early Tender Deadline and accepted for purchase exceeded the Waterfall Tender Cap, no more Notes will be accepted in the Waterfall Tender Offer, regardless of Acceptance Priority Level.

The withdrawal rights for the Waterfall Tender Offer expired at 5:00 p.m., New York City time, on September 21, 2020; therefore, previously tendered 3.650% Notes or 3.800% Notes may no longer be withdrawn.

The Waterfall Tender Offer is subject to the satisfaction or waiver of certain conditions set forth in the Offer to Purchase, dated September 8, 2020 (the "Offer to Purchase").

The Company has retained BNP Paribas Securities Corp. and Credit Agricole Securities (USA) Inc. to serve as Lead Dealer Managers for the Waterfall Tender Offer.  The Company has also retained Global Bondholder Services Corporation to serve as depositary and information agent for the Waterfall Tender Offer.

Requests for documents relating to the Waterfall Tender Offer may be directed to Global Bondholder Services Corporation by telephone at (866) 794-2200 or (212) 430-3774, in writing at 65 Broadway, Suite 404, New York, New York 10006 or online at https://www.gbsc-usa.com/ip/.  Questions regarding the Waterfall Tender Offer may be directed to BNP Paribas Securities Corp. at (888) 210-4358 (toll-free), (212) 841-3059 (collect), or dl.us.liability.management@us.bnpparibas.com or Credit Agricole Securities (USA) Inc. at (866) 807-6030 (toll-free) or (212) 261-7802 (collect).

This press release is not a tender offer to purchase or a solicitation of acceptance of a tender offer, which may be made only pursuant to the terms of the Offer to Purchase.  In any jurisdiction where the laws require the Waterfall Tender Offer to be made by a licensed broker or dealer, the Waterfall Tender Offer will be deemed made on behalf of the Company by the dealer managers or one or more registered brokers or dealers under the laws of such jurisdiction.

None of the Company, its board of directors, the depositary, the information agent, any of the dealer managers or the trustee for the Notes is making any recommendation as to whether holders should tender Notes in response to the Waterfall Tender Offer. Holders must make their own decisions as to whether to tender Notes, and, if so, the principal amount of Notes to tender.

Forward-Looking and Cautionary Statements
This press release may contain "forward-looking statements." Such forward- looking statements may include, without limitation, statements about the Company's market opportunities, strategies, competition and expected activities and expenditures, and at times may be identified by the use of words such as "may," "will," "could," "should," "would," "project," "believe," "anticipate," "expect," "plan," "estimate," "forecast," "potential," "intend," "continue" and variations of these words or comparable words. Forward-looking statements are based on current expectations and assumptions, and inherently involve risks and uncertainties. Accordingly, actual results may differ materially from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the amount of Notes tendered and satisfaction of the conditions of the Waterfall Tender Offer contained in the Offer to Purchase. Other factors that could cause or contribute to actual results differing materially from such forward looking statements are discussed in greater detail in the Company's Securities and Exchange Commission filings. You should not place undue reliance on our forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to make any revision to the forward-looking statements contained in this press release or to update them to reflect events or circumstances occurring after the date of this press release.

About International Paper

International Paper (NYSE: IP) is a leading global producer of renewable fiber-based packaging, pulp and paper products with manufacturing operations in North America, Latin America, Europe, North Africa and Russia. We produce corrugated packaging products that protect and promote goods, and enable world-wide commerce; pulp for diapers, tissue and other personal hygiene products that promote health and wellness; and papers that facilitate education and communication. We are headquartered in Memphis, Tenn., employ more than 50,000 colleagues and serve more than 25,000 customers in 150 countries. Net sales for 2019 were $22 billion. For more information about International Paper, our products and global citizenship efforts, please visit internationalpaper.com.

 

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SOURCE International Paper

FAQ

What is the Waterfall Tender Offer announced by International Paper on September 22, 2020?

International Paper announced a Waterfall Tender Offer to purchase up to $700 million of its 3.650% Notes due 2024 and 3.800% Notes due 2026.

What are the pricing terms for the Notes in the Waterfall Tender Offer by International Paper?

The pricing terms include a Reference Yield of 0.263%, with total consideration for the 3.650% Notes at $1,111.66 and for the 3.800% Notes at $1,153.18.

What was the Early Tender Deadline for the Waterfall Tender Offer?

The Early Tender Deadline was set for 5:00 p.m., New York City time, on September 21, 2020.

What happens if the aggregate principal amount of Notes exceeds the Waterfall Tender Cap?

No additional Notes will be accepted in the Waterfall Tender Offer if the aggregate principal amount tendered exceeds the Waterfall Tender Cap.