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Management Side
International Paper
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Memphis, Tennessee, USA, 12 August  2009 -- /PRNewswire/ -- International Paper (NYSE: IP) today announced the expiration and final results of its offer to purchase any and all of its 7.40% Notes Due 2014. International Paper refers to its offer to purchase the 7.40% Notes as the "Any and All Tender Offer."

As of 5 p.m., Eastern Time, on 11 August 2009, the expiration date for the offer, the aggregate principal amount of 7.40% Notes tendered in the offer was USD 567,450,000, representing 56.75% of the USD 1,000,000,000 aggregate principal amount of 7.40% Notes. All of the 7.40% Notes that were tendered have been accepted for payment by International Paper, with settlement expected to occur today. The holders of the 7.40% Notes that were accepted for purchase will be entitled to receive the tender offer consideration of USD 1100 per USD 1000 principal amount of 7.40% Notes, plus accrued and unpaid interest from and including the last interest payment date (15 June 2009) to, but not including, the settlement date.

The Any and All Tender Offer was made pursuant to an offer to purchase dated 03 August 2009, which set forth a complete description of the terms of the Any and All Tender Offer.

Also described in the Offer to Purchase is an offer by International Paper to purchase up to USD 1,000,000,000 in aggregate principal amount, less any principal amount of the 7.40% Notes accepted in the Any and All Tender Offer (the Maximum Tender Amount), of its 7.20% Notes Due 2026 and its 5.50% Notes Due 2014. International Paper refers to its offer to purchase the 7.20% Notes and 5.50% Notes as the Maximum Tender Offer. As a result of the amount of 7.40% Notes tendered and accepted for payment in the Any and All Tender Offer, the Maximum Tender Amount is USD 432,550,000, which is sufficient to purchase any and all notes tendered pursuant to the Maximum Tender Offer. The 7.40% Notes, the 7.20% Notes, and the 5.50% Notes are referred to, collectively, as the Securities. Holders of 7.20% Notes and 5.50% Notes are urged to read the Offer to Purchase and the related Letter of Transmittal carefully before making any decision with respect to the Maximum Tender Offer. The Maximum Tender Offer is conditioned on satisfaction of certain conditions set forth in the Offer to Purchase.

Holders who have not already tendered 7.20% Notes and 5.50% Notes may tender those notes at any time at or before 5 p.m., Eastern Time, on 31 August 2009 (the Maximum Tender Offer Expiration Date), unless International Paper extends or earlier terminates the Maximum Tender Offer. Holders of 7.20% Notes and 5.50% Notes that are validly tendered and not withdrawn at or prior to 5 p.m., Eastern Time, on 14 August 2009, and accepted for purchase will receive the applicable tender offer consideration plus the applicable early tender premium. Withdrawal rights for the Maximum Tender Offer have expired.

Previously, International Paper  announced that it had priced USD 1.0 billion of 7.50% senior unsecured notes due 2021, with a public offering price of 99.92%. 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 the company, is USD 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 212-834-4533.

Citi, Deutsche Bank Securities Inc. and RBS Securities Inc. are the dealer managers of the tender offers. Global Bondholder Services Corporation has been retained to serve 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.

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 58,000 people in more than 20 countries and serves customers worldwide. Net sales in 2008 were approximately USD 25 billion. For more information about International Paper, its products, and stewardship efforts, visit www.internationalpaper.com.

 

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