International Paper Company (NYSE:IP) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement.
On December8, 2017, International Paper Company (the “Company”) entered into a $660million five-year credit agreement (the “Credit Agreement”) with a syndicate of banks and other financial institutions (the “Lenders”), including Bank of America, N.A., as administrative agent (“Bank of America”), and BNP Paribas. Merrill Lynch, Pierce, Fenner& Smith Incorporated and BNP Paribas Securities Corp. served as joint lead arrangers and joint bookrunners.
On December8, 2017, the Company borrowed $660million under the Credit Agreement. The proceeds will be used to repay certain existing indebtedness of the Company and its subsidiaries and to pay fees and expenses of the Company in connection with the Credit Agreement.
Borrowings under the Credit Agreement generally will either bear interest at (i)a rate per year equal to the Applicable Rate (as defined in the Credit Agreement) plus the highest of (a)the Federal Funds Rate (as defined in the Credit Agreement) plus 1/2 of one percentage point (b)the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate”, and (c)the Eurodollar Rate (as defined in the Credit Agreement) plus one percentage point or (ii)the Eurodollar Rate plus the Applicable Rate.
The Credit Agreement contains customary affirmative and negative covenants, as well as customary events of default, substantially similar to those included in the Company’s $1,500,000,000 5-Year Credit Agreement, dated as of December12, 2016.
In connection with the Company’s previously announced agreement to transfer its North American consumer packaging business to a subsidiary of Graphic Packaging Holding Company (“Graphic”), a subsidiary of Graphic will assume the indebtedness incurred to the Credit Agreement.For a period of not less than seven calendar days and not more than ten calendar days following the closing of the Graphic transaction, the Company shall provide a guarantee of the indebtedness incurred to the Credit Agreement.
Certain of the Lenders, as well as certain of their affiliates, engage in transactions with, and perform services for, the Company and its affiliates in the ordinary course of business and have engaged, and may in the future engage, in other commercial banking transactions and investment banking, financial advisory and other financial services transactions with the Company and its affiliates.
The foregoing description of the Credit Agreement does not purport to be complete, and is qualified in its entirety by reference to the full text of the Credit Agreement, which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.
Item 1.01 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth above under Item 1.01 is hereby incorporated by reference into this Item 1.01.
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Item 1.01 Financial Statements and Exhibits.
(d) Exhibits.
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ExhibitNumber |
Description |
| Exhibit10.1 | Credit Agreement, dated December8, 2017, by and among the Company, Bank of America, N.A. and BNP Paribas. |
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EXHIBIT INDEX
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INTERNATIONAL PAPER CO /NEW/ ExhibitEX-10.1 2 d461338dex101.htm EX-10.1 EX-10.1 Exhibit 10.1 Published Deal CUSIP Number: 46014RAN7 Published Facility CUSIP Number: 46014RAP2 CREDIT AGREEMENT dated as of December 8,…To view the full exhibit click here
About International Paper Company (NYSE:IP)
International Paper Company (International Paper) is a paper and packaging company with primary markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia, Africa and the Middle East. The Company operates in three segments: Industrial Packaging, Printing Papers and Consumer Packaging. It is a manufacturer of containerboard in the United States. Its products include whitetop, recycled linerboard and saturating kraft. It is the producer of printing and writing papers. The products in Printing Papers segment include uncoated papers and pulp. Its uncoated papers engage in the business of producing papers for use in copiers, desktop and laser printers and digital imaging. Its uncoated papers are sold under private label and International Paper brand names that include Hammermill, Springhill, Ballet, Pol and Svetocopy. Its Everest, Fortress, and Starcote brands are used in packaging applications for everyday products, such as food and tobacco products.