MEMPHIS, Tenn., Aug. 3 /PRNewswire-FirstCall/ -- International Paper Company (NYSE: IP) today announced that it has priced $1.0 billion of 7.500% senior unsecured notes due 2021. The public offering price of the notes is 99.920%. The offering was made pursuant to an effective shelf registration statement.

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Concurrent with the commencement of the offering of senior unsecured notes, International Paper commenced offers to purchase for cash (i) any and all of its outstanding 7.40% notes due 2014 and (ii) up to a maximum tender amount of its 7.20% notes due 2026 and 5.50% notes due 2014. The maximum tender amount, unless increased by us, is $1.0 billion in aggregate principal amount less the aggregate principal amount, if any, of the 7.40% notes due 2014 accepted for purchase. International Paper intends to use the net proceeds from the offering of senior unsecured notes, together with cash on hand, to fund the purchase price of notes tendered and accepted by it for purchase in the tender offers, including the payment of accrued interest and any applicable premiums. International Paper intends to use any net proceeds remaining from the offering of senior unsecured notes, including if the tender offers are not consummated, to repay certain other indebtedness and for general corporate purposes.

Banc of America Securities LLC, J.P. Morgan Securities Inc., BNP Paribas Securities Corp. and UBS Securities LLC acted as joint book-running managers for the offering of senior unsecured notes. Copies of the prospectus supplement and accompanying prospectus, when available, may be obtained by contacting Banc of America Securities LLC, 100 West 33rd Street, New York, NY 10001, Attention: Prospectus Department, or by calling 1-800-294-1322; or J.P. Morgan Securities Inc., 270 Park Avenue, New York, NY 10017, Attention: Investment Grade Syndicate Desk, or by calling 1-212 834 4533.

This release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About International Paper

International Paper (NYSE: IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company.

This press release contains forward-looking statements. These statements reflect management's current views and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. Actual results may differ as a result of, among other things, our failure to close the notes offering or the tender offers, whether as a result of our failure to meet the conditions precedent thereto or otherwise.

We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. These and 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.

SOURCE  International Paper Company


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