International Paper Plans $3 Billion Bond Sale Amid Bankruptcy Matters

International Paper Co., a key player in the $9.5 billion acquisition of Champion International Corp., has announced plans to sell $3 billion worth of bonds by mid-June. The sale, managed by Credit Suisse First Boston, will be executed through the private sale of notes in three parts: a two-year floating-rate note and fixed-rate notes maturing in three and five years. This development comes amidst the U.S. Supreme Court's recent decision on insurers' claims in bankruptcy proceedings.

Key Takeaways:

• International Paper plans to sell $3 billion worth of bonds by mid-June, as part of its $9.5 billion acquisition of Champion International Corp.
• The bond sale will be executed through the private sale of notes in three parts: a two-year floating-rate note and fixed-rate notes maturing in three and five years.
• The sale is being managed by Credit Suisse First Boston.
• International Paper's senior debt is rated "Baa1" by Moody's Investors Service and "BBB+" by Standard & Poor's.
• The high court has ruled that insurers cannot invoke a provision designed to provide reimbursement for money spent to preserve the assets of a bankruptcy estate during court proceedings.

Statistics:

• $9.5 billion: The acquisition price of Champion International Corp.
• $3 billion: The value of bonds planned to be sold by International Paper
• 3 parts: The division of bond sale notes
• 2 years: The maturity period of the floating-rate note
• 3 years: The maturity period of one of the fixed-rate notes
• 5 years: The maturity period of the other fixed-rate note
• "Baa1": The senior debt rating of International Paper by Moody's Investors Service
• "BBB+": The senior debt rating of International Paper by Standard & Poor's

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Sources:

• Bloomberg News
• The U.S. Supreme Court
• Credit Suisse First Boston
• Moody's Investors Service
• Standard & Poor's
• International Paper Co.