By Andrea Heisinger
New York, Aug. 3 - International Paper Co. sold $1 billion in 7.5% 12-year senior unsecured notes Monday to yield Treasuries plus 387.5 basis points, an informed source said.
The notes (Baa3/BBB/) priced at 99.92 to yield 7.501%. They have a make-whole call at Treasuries plus 50 bps.
The notes feature a change-of-control put of 101%.
Active bookrunners were Bank of America Merrill Lynch and J.P. Morgan Securities Inc., with BNP Paribas Securities Corp. and UBS Investment Bank as passive bookrunners.
Co-managers were BBVA Securities Inc., Calyon Securities, Commerzbank Capital Markets, Daiwa Securities America Inc., Mitsubishi UFJ Securities, Mizuho Securities USA Inc., Morgan Keegan & Co., Scotia Capital, SG Americas Securities LLC and Wells Fargo Securities.
Proceeds will be used to fund the purchase of three note issues in tender offers, with the remainder for debt repayment and for general corporate purposes.
The paper and packaging company is based in Memphis.
| Issuer: | International Paper Co.
|
| Issue: | Senior unsecured notes
|
| Amount: | $1 billion
|
| Maturity: | Aug. 15, 2021
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities Inc. (active), BNP Paribas Securities Corp., UBS Investment Bank (passive)
|
| Co-managers: | BBVA Securities Inc., Calyon Securities, Commerzbank Capital Markets, Daiwa Securities America Inc., Mitsubishi UFJ Securities, Mizuho Securities USA Inc., Morgan Keegan & Co., Scotia Capital, SG Americas Securities LLC, Wells Fargo Securities
|
| Coupon: | 7.5%
|
| Price: | 99.92
|
| Yield: | 7.501%
|
| Spread: | Treasuries plus 387.5 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 3
|
| Settlement date: | Aug. 10
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
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