International Paper wraps $1.5 billion revolver at Libor plus 120 bps

By Aleesia Forni

Columbus, Ohio, Aug. 31 - International Paper Co. entered into a new $1.5 billion five-year unsecured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission on Friday.

The loans will bear an interest of Libor plus a margin of 100 basis points to 145 bps, with initial pricing on the loan at Libor plus 120 bps based on the company's credit rating.

Facility fees under the revolver range from 12.5 bps to 30 bps, with an initial fee of 17.5 bps.

The company has the option of increasing the size of the facility to $2 billion.

Borrowings will be used for general corporate purposes.

The facility will terminate on August 26, 2016.

JPMorgan Chase Bank NA is administrative agent.

Citibank NA is syndication agent, and UBS Securities LLC is documentation agent.

The agreement contains certain covenants, including the requirement that the company must maintain a consolidated net worth of no less than $9 billion and a ratio of total debt to total capital of less than 0.6 to 1.0.

The company also terminated an existing $1.5 billion loan, dated Nov. 20, 2009.

International Paper is a Memphis, Tenn.-based manufacturer of paper and packaging products.

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