Georgia-Pacific to tender for $2.6 billion notes, debentures

By Jennifer Chiou

New York, Nov. 14 - Georgia-Pacific Corp. announced it plans to tender for $2.6 billion of debt securities it and its Fort James subsidiary have issued.

Affected securities include Georgia-Pacific's 7 3/8% senior notes due 2008, 8% senior notes due 2014, 8 7/8% senior notes due 2010 and 9 3/8% senior notes due 2013 as well as the Fort James debt, which includes 6 7/8% senior notes due 2007, 9¼% debentures due 2021 and 7¾% notes due 2023.

The company, which expects to start the offer no later than Nov. 18, also intends to solicit consents to eliminate the principal restrictive covenants in the notes' indentures.

The tender offer is part of the acquisition of Georgia-Pacific by Koch Forest Products, Inc., a wholly owned subsidiary of Koch Industries, Inc.

The offer is conditioned upon the completion of the associated merger following Koch's all-cash tender offer for shares of Georgia-Pacific stock. Koch will provide the funding to pay for all bonds tendered.

Citigroup Global Markets Inc. and Goldman, Sachs & Co. are the dealer managers for the tender.

Atlanta-based Georgia-Pacific manufactures and markets tissue, packaging, paper, building products and related chemicals.

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