22 November 2006 — Memphis (TN): International Paper (IP) has commenced a cash tender offer to purchase a portion of its outstanding bonds.
Under the terms of the offer, IP would use up to $2.35 billion in cash to repurchase a portion of its outstanding bonds.
On 13 July, the company announced plans to spend approximately $6 billion to $7 billion to strengthen its balance sheet, primarily through debt repayment, as a component of its transformation plan, launched in 2005.
This tender offer represents a portion of that debt repayment.
As of the end of the third quarter, IP had debt of approximately $10.5 billion, reduced from approximately $13.4 billion at the end of Q2 2005.
John Faraci, IP’s chairman and CEO, said: "We committed to our shareowners that we would use a portion of proceeds from our transformation plan to strengthen our balance sheet, and that’s what we’re doing."