MEMPHIS, Tenn., Sept. 8, 2020 /PRNewswire/ -- International
Paper Company (NYSE: IP) (the "Company") announced today that it
has commenced a cash tender offer for (i) any and all (the "Any and
All Tender Offer") of its outstanding 3.000% Notes due 2027 (the
"3.000% Notes") and (ii) up to $700
million combined aggregate principal amount, less the
aggregate principal amount of 3.000% Notes purchased in the Any and
All Tender 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 3.000% Notes and
the 3.650% Notes, the "Notes") (the "Waterfall Tender Offer" and,
together with the Any and All Tender Offer, the "Tender
Offers"). The terms and conditions of the Tender Offers are
described in the Company's offer to purchase dated September 8, 2020 (as may be amended or
supplemented from time to time, the "Offer to Purchase"), the
related Letter of Transmittal and, in the case of the 3.000% Notes,
the related Notice of Guaranteed Delivery.
In the Tender Offers, the Company is offering to purchase, under
the terms and subject to the conditions set forth in the Offer to
Purchase, its 3.000% Notes, 3.650% Notes and 3.800% Notes as
summarized in the table below:
Title of
Security(1)
|
CUSIP
|
Principal
Amount
Outstanding
|
Acceptance
Priority
Level
|
Reference U.S.
Treasury
Security
|
Bloomberg
Reference
Page
|
Fixed
Spread
(basis points)
|
Early
Tender
Premium(2)(3)
|
Hypothetical
Total
Consideration(4)
|
Any and All
Tender Offer
|
|
|
|
|
|
|
|
3.000% Notes
due 2027
|
460146 CP6
|
$774,639,000
|
N/A
|
0.625% due
August 15, 2030
|
FIT1
|
40 bps
|
N/A
|
$1,114.50
|
Waterfall
Tender Offer
|
|
|
|
|
|
|
|
3.650% Notes
due 2024
|
460146 CJ0
|
$658,942,000
|
1
|
0.250% due
August 31, 2025
|
FIT1
|
15 bps
|
$30
|
$1,111.36
|
3.800% Notes
due 2026
|
460146 CL5
|
$654,795,000
|
2
|
0.250% due
August 31, 2025
|
FIT1
|
45 bps
|
$30
|
$1,152.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_________________________
|
(1)
|
The Total
Consideration (as defined below) of each series of Notes will be
determined taking into account the par call date for such series of
Notes, as described in the Offer to Purchase. In addition,
holders whose Notes are accepted will also receive accrued and
unpaid interest on their purchased Notes.
|
(2)
|
Per $1,000 principal
amount of Notes accepted for purchase. Upon the terms and subject
to the conditions set forth in the Offer to Purchase, an early
tender premium (the "Early Tender Premium") will be paid to holders
of 3.650% Notes and 3.800% Notes who tender, and do not validly
withdraw, their Notes at or before 5:00 p.m., New York City time,
on September 21, 2020, unless extended (the "Early Tender
Deadline").
|
(3)
|
Fixed Spread includes
Early Tender Premium
|
(4)
|
The Hypothetical
Total Consideration shown in this table is per $1,000 principal
amount of Notes and assumes an Any and All Settlement Date of
September 16, 2020 for the 3.000% Notes and a Waterfall Early
Settlement Date of September 23, 2020 for the 3.650% Notes and
3.800% Notes, and the Reference Yield determined at 10:00 a.m., New
York City time, on September 4, 2020, as calculated by the Lead
Dealer Managers (see Schedule B to the Offer to
Purchase).
|
The aggregate principal amount of 3.650% Notes and 3.800% Notes
purchased in the Waterfall Tender Offer will not exceed the
Waterfall Tender Cap. If $700
million aggregate principal amount or more of 3.000% Notes
are accepted for purchase in the Any and All Tender Offer, then the
Company will not accept any tenders in the Waterfall Tender
Offer. Tendered 3.650% Notes and 3.800% Notes will be
accepted in the order of the acceptance priority level for such
series (in numerical priority order) as set forth in the table
above, with 1 being the highest acceptance priority level, and
based on whether the 3.650% Notes and 3.800% Notes are tendered at
or before the Early Tender Deadline or after the Early Tender
Deadline, as described in the Offer to Purchase.
Notwithstanding the acceptance priority level, if any 3.650% Notes
and 3.800% Notes are purchased in the Waterfall Tender Offer, Notes
tendered at or prior to the Early Tender Deadline will be accepted
for purchase in priority to Notes tendered after the Early Tender
Deadline and at or prior to the Waterfall Expiration Time (as
defined below). Accordingly, if the Waterfall Tender Cap is
reached in respect of tenders made at or prior to the Early Tender
Deadline, no 3.650% Notes or 3.800% Notes tendered after the Early
Tender Deadline (regardless of acceptance priority level) will be
accepted for purchase, unless we increase the Waterfall Tender Cap.
Under certain circumstances, the Company will accept tendered
3.650% Notes or 3.800% on a pro rata basis as further described in
the Offer to Purchase.
The Any and All Tender Offer will expire at 5:00 p.m., New York
City time, on September 14,
2020 unless extended (such date and time, as the same may be
extended, the "Any and All Expiration Time") or earlier terminated.
Any 3.000% Notes tendered may be withdrawn at any time at or
prior to 5:00 p.m., New York City time, on September 14, 2020, unless extended (such date
and time, as the same may be extended, the "Any and All Withdrawal
Deadline"). Holders of 3.000% Notes must validly tender and not
validly withdraw their Notes at or before the Any and All
Expiration Time to be eligible to receive the Total Consideration
(defined below) for their Notes.
The Waterfall Tender Offer will expire at 11:59 p.m., New York
City time, on October 5, 2020
unless extended (such date and time, as the same may be extended,
the "Waterfall Expiration Time") or earlier terminated.
Holders of 3.650% Notes and 3.800% Notes must validly tender
and not validly withdraw their Notes at or before 5:00 p.m., New York
City time, on September 21,
2020, unless extended (such date and time, as the same may
be extended, the "Early Tender Deadline") to be eligible to receive
the Total Consideration for the applicable series of Notes.
Holders of 3.650% Notes and 3.800% Notes who validly tender their
Notes after the Early Tender Deadline and at or before the
Waterfall Expiration Time will receive the Tender Consideration
(defined below) per $1,000 principal
amount of Notes tendered by such holders that are accepted for
purchase. Any 3.650% Notes and 3.800% Notes tendered before
the Early Tender Deadline may be withdrawn at any time at or prior
to 5:00 p.m., New York City time, on September 21, 2020, unless extended (such date
and time, as the same may be extended, the "Waterfall Withdrawal
Deadline"). The Any and All Withdrawal Deadline and the Waterfall
Withdrawal Deadline are each referred to as a "Withdrawal
Deadline."
Holders of 3.000% Notes that are validly tendered and not
validly withdrawn at or before the Any and All Expiration Time, and
holders of 3.650% Notes and 3.800% Notes that are validly tendered
and not validly withdrawn at or before the Early Tender Deadline,
and that are accepted for purchase will receive the applicable
Total Consideration for such Notes, subject to the terms and
conditions set forth in the Offer to Purchase. Holders of
3.650% Notes and 3.800% Notes that are validly tendered after the
Early Tender Deadline and at or before the Waterfall Expiration
Time and accepted for purchase will receive the applicable Tender
Consideration for such Notes, which equals the Total Consideration
for Notes of such series minus the applicable Early Tender Premium
for the applicable series, subject to the terms and conditions set
forth in the Offer to Purchase (the "Tender Consideration").
The Early Tender Premium is not applicable to the Any and All
Tender Offer for the 3.000% Notes.
The date of payment for 3.000% Notes accepted for purchase is on
either the date referred to as the "Any and All Settlement Date" or
on the date referred to as the "Guaranteed Delivery Settlement
Date." The date of payment for 3.650% Notes and 3.800% Notes
validly tendered at or before the Early Tender Deadline and
accepted for purchase is referred to as the "Waterfall Early
Settlement Date." The date of payment for 3.650% Notes and 3.800%
Notes validly tendered after the Early Tender Deadline and at or
before the Waterfall Expiration Time and accepted for purchase is
referred to as the "Waterfall Final Settlement Date." The Any and
All Settlement Date is expected to be September 16, 2020, the Guaranteed Delivery
Settlement Date is expected to be on September 17, 2020, the Waterfall Early
Settlement Date is expected to be September
23, 2020 and the Waterfall Final Settlement Date is expected
to be October 7, 2020. The Any and
All Settlement Date, the Guaranteed Delivery Settlement Date, the
Waterfall Early Settlement Date and the Waterfall Final Settlement
Date are each referred to as a "Settlement Date." Holders whose
Notes are accepted for purchase pursuant to the Tender Offers will
also receive accrued and unpaid interest on their purchased Notes
from the last interest payment date for such Notes to, but
excluding, the Any and All Settlement Date (in the case of all
3.000% Notes accepted in the Any and All Tender Offer), the
Waterfall Early Settlement Date or the Waterfall Final Settlement
Date, as applicable.
The "Total Consideration" for each $1,000 principal amount of Notes tendered and
accepted for payment pursuant to the Tender Offers will be
determined in the manner described in the Offer to Purchase by
reference to a fixed spread specified in the table above for each
series of the Notes over the yield based on the bid side price of
the U.S. Treasury Security specified in the table above, as
calculated by BNP Paribas Securities Corp. and Credit Agricole
Securities (USA) Inc. at
10:00 a.m., New York City time, on September 14, 2020, for the 3.000% Notes, and at
10:00 a.m., New York City time, on September 22, 2020, for the 3.650% Notes and
3.800% Notes, in each case, unless extended.
Notes tendered may be validly withdrawn at any time at or before
the applicable Withdrawal Deadline, but not thereafter, except in
certain limited circumstances where additional withdrawal rights
are required by law (as determined by the Company). Notes
tendered after the applicable Withdrawal Deadline may not be
withdrawn except in certain limited circumstances where additional
withdrawal rights are required by law (as determined by the
Company).
The Tender Offers are subject to the satisfaction or waiver of
certain conditions set forth in 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 Tender Offers. The
Company has also retained Global Bondholder Services Corporation to
serve as depositary and information agent for the Tender
Offers.
Requests for documents relating to the Tender Offers 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 Tender Offers 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 Tender Offers to be made by
a licensed broker or dealer, the Tender Offers will be deemed made
on behalf of the Company by one of 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 Tender Offers. 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
following: the amount of Notes tendered and satisfaction of the
conditions of the Tender Offers 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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