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International Paper Refinances Euro Term Loan

March 13, 2009 (Press Release) - International Paper Company announced today that it raised approximately $470 million from a syndicate of banks to refinance the majority of its euro 500 million bank term loan, which had a maturity date of August 2009. The new term loan matures in March 2012.

The company used available cash on hand to pay off the remaining loan balance of approximately $170 million. Including the repayment of approximately $365 million of notes in January 2009, International Paper has repaid $535 million of debt year to date.

The company has $530 million of remaining debt maturities in 2009, of which it plans to repay $195 million with cash on hand and extend the maturity date on the balance of $335 million as follows:

  1. The company plans to exercise its option to extend the maturity dates on $165 million of notes associated with timber monetization transactions and refinance approximately $55 million of other debt.
  2. The company's 50%-owned Sun joint venture in China plans to refinance $115 million of local bank debt with existing lenders.

At the end of February, International Paper had about $900 million in cash on hand and had no borrowings on either its revolving credit facility or accounts receivable securitization facility.

SOURCE: International Paper




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