Memphis, Tennessee, USA, 13 March 2009 -- /PRNewswire/ -- International Paper Company (NYSE: IP) announced today that it raised approximately USD 470 million from a syndicate of banks to refinance the majority of its EUR 500 million bank term loan, which had a maturity date of August 2009. The new term loan matures in March 2012. The company used available cash on hand to pay off the remaining loan balance of approximately USD 170 million.
Including the repayment of approximately USD 365 million of notes in January 2009, International Paper has repaid USD 535 million of debt year to date. The company has USD 530 million of remaining debt maturities in 2009, of which it plans to repay USD 195 million with cash on hand and extend the maturity date on the balance of USD 335 million as follows:
- The company plans to exercise its option to extend the maturity dates on USD 165 million of notes associated with timber monetization transactions and refinance approximately USD 55 million of other debt.
- The company's 50%-owned Sun joint venture in China plans to refinance USD 115 million of local bank debt with existing lenders.
At the end of February, International Paper had about USD 900 million in cash on hand and had no borrowings on either its revolving credit facility or accounts receivable securitization facility. "We are pleased to complete this transaction in a very challenging credit environment," said John Faraci, chairman and CEO. "We remain committed to reducing our debt and maintaining a solid liquidity position."
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. Headquartered in Memphis, Tennessee, the company employs more than 61,500 people in more than 20 countries and serves customers worldwide. The company's net sales in 2008 were approximately USD 25 billion. For more information about International Paper, its products, and stewardship efforts, visit internationalpaper.com.