IP Announces Early Tender Results of Cash Tender Offer for Certain of its Outstanding Notes for an Aggregate Purchase Price of up to $700 million
MEMPHIS, Tenn. (News release) -- International Paper Company announced the early tender results as of 5:00 p.m., New York City time, on June 18, 2021 (the "Early Tender Deadline") for its previously announced cash tender offer (the "Offer") for up to $700 million aggregate purchase price (excluding Accrued Interest (as defined below) and excluding fees and expenses related to the Offer) (the "Aggregate Maximum Amount") of its outstanding 4.400% Notes due 2047 (the "4.400% Notes"), 4.350% Notes due 2048 (the "4.350% Notes"), 4.80% Notes due 2044 (the "4.80% Notes") and 5.000% Notes due 2035 (the "5.000% Notes" and, together with the 4.400% Notes, the 4.350% Notes and the 4.80% Notes, the "Notes"). As of the Early Tender Deadline, the Company received tenders for the aggregate principal amount of each series of Notes as set forth in the table below.
Notes that have been validly tendered and not validly withdrawn at or before the Early Tender Deadline and are accepted in the Offer will be purchased, retired and cancelled by the Company on the early settlement date, which is expected to occur on June 22, 2021 (the "Early Settlement Date"). The amounts of each series of Notes that are purchased on the Early Settlement Date will be determined in accordance with the acceptance priority levels and the proration procedures described in the Offer to Purchase, dated June 7, 2021 (the "Offer to Purchase"). Holders who validly tendered and did not withdraw their Notes on or before the Early Tender Deadline, and whose Notes are accepted for purchase pursuant to the Offer, will be entitled to receive the total consideration (the "Total Consideration"). The Total Consideration will be determined in the manner described in the Offer to Purchase by reference to the applicable fixed spread for the Notes of the applicable series over the yield based on the bid-side price of the applicable U.S. Treasury Security for such series of Notes, as calculated by Deutsche Bank Securities Inc., the Lead Dealer Manager, at 10:00 a.m., New York City time, on June 21, 2021, unless extended. The Total Consideration includes an early tender premium of $30.00 per $1,000 principal amount of Notes (the "Early Tender Premium"). Holders whose Notes are accepted for purchase pursuant to the Offer will also receive accrued and unpaid interest on their purchased Notes from the last interest payment date for such Notes to, but excluding, the Early Settlement Date ("Accrued Interest"). The Notes tendered pursuant to the Offer may no longer be withdrawn, except in certain limited circumstances where additional withdrawal rights are required by law (as determined by the Company).
The Company also announced that the date and time that the Offer will expire (the "Expiration Time") has been extended from 11:59 p.m., New York City time, on July 2, 2021 to 11:59 p.m., New York City time, on July 6, 2021, and that the date and time of payment for Notes that are validly tendered after the Early Tender Deadline and prior to the Expiration Time and are accepted for purchase, if any, has been extended from July 7, 2021 to July 8, 2021. Because the aggregate purchase price of Notes validly tendered and not validly withdrawn will exceed the Aggregate Maximum Amount, no more Notes will be accepted, regardless of Acceptance Priority Level. The Offer is subject to the satisfaction or waiver of certain conditions set forth in the Offer to Purchase.
|