International Paper starts tender offer for $1.07 billion of six series of outstanding notes

By Susanna Moon

Chicago, May 11 - International Paper Co. said it began a cash tender offer to purchase any and all of six series of its outstanding bonds.

The notes eligible for tenders are the company's $414.35 million of 4% notes due 2010, $44,333,000 of 9.25% debentures due 2011, $195,425,000 of 6.75% notes due 2011, $16,469,000 of 8.875% debentures due 2012, $249,088,000 of 5.85% notes due 2012 and $148.8 million of 5.125% notes due 2012.

There is $1,068,465,000 of the notes outstanding as of May 1.

International Paper expects to purchase the bonds using cash and proceeds from its recent issuance of 9.375% notes due 2019.

The offer will expire at 5 p.m. ET on May 19.

For each $1,000 principal amount, International Paper said it will pay $1,010 for the 4% notes, $1,050 for the 9.25% notes, $1,040 for the 6.75% notes, $1,060 for the 8.875% notes, $1,020 for the 5.85% notes and $985 for the 5.125% notes.

The company also will pay accrued interest to the settlement date, which is expected to be May 20.

Citigroup Global Markets Inc. (800 558-3745 or collect 212 723-6106) and UBS Securities LLC (888 719-4210 or collect 203 719-4210) are the lead dealer managers, and Banc of America Securities LLC, BNP Paribas Securities Corp, J.P. Morgan Securities Inc. and RBS Securities Inc. are serving asco-dealer managers for the tender offer.

Global Bondholder Services Corp. (866 470-3900 or 212 430-3774) is the depositary and information agent.

The paper and packaging company is based in Memphis.

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