MEMPHIS, Tenn., Dec. 7 /PRNewswire-FirstCall/ -- International
Paper (NYSE:IP) today announced that, according to information
provided by Global Bondholder Services Corporation, the depositary
and information agent for the company's previously announced tender
offer, an aggregate principal amount of $3.64 billion of the bonds
listed below were validly tendered and not validly withdrawn on or
before 5:00 p.m., New York City time, on Dec. 6, 2006 (the early
tender date for the offer). (Logo:
http://www.newscom.com/cgi-bin/prnh/20020701/IPLOGO ) On Nov. 22,
2006, International Paper announced its offer to purchase a portion
of its debt securities specified in the table following this
release, subject to a total purchase price of $2.35 billion
(excluding accrued interest, fees and expenses). The full terms and
conditions of the tender offer are set forth in the company's offer
to purchase and related letter of transmittal, each dated Nov. 22,
2006. The amount of each series of bonds that are purchased in the
tender offer will be determined in accordance with the priorities
identified in the column "Acceptance Priority Level" in the table
following this release. The tender offer will expire at 12:00
midnight, New York City time, on Dec. 20, 2006, unless extended by
the company. The table following this release identifies the
aggregate principal amount of each series of notes validly tendered
and not validly withdrawn on or before the early tender date.
Because an amount in excess of $2.35 billion in aggregate principal
amount of bonds were tendered as of the early tender date,
International Paper will not accept all of the notes tendered for
purchase. The company's 4.25% Notes due 2009 (CUSIP No. 460146BV4),
5.30% Notes due 2015 (CUSIP No. 460146BU6), 5.25% Notes due 2016
(CUSIP No. 460146BZ5), 4.00% Notes due 2010 (CUSIP No. 460146BY8)
and 6.65% Notes due 2037 (CUSIP No. 158525AU9) will not be accepted
for purchase, and tendered notes of these series will be promptly
returned to the tendering parties. Banc of America Securities LLC,
Citigroup Global Markets Inc., J.P. Morgan Securities Inc. are the
dealer managers of the tender offer and Barclays Capital Inc.,
Deutsche Bank Securities Inc. and Morgan Stanley are serving as
co-dealer managers for the tender offer. Global Bondholder Services
Corporation has been retained to serve as the depositary and
information agent. This news release is neither an offer to
purchase nor a solicitation of an offer to sell the notes. The
tender offer is made only by the offer to purchase, and the
information in this news release is qualified by reference to the
offer to purchase and related letter of transmittal. Persons with
questions regarding the tender offer should contact Banc of America
Securities LLC at (toll-free) (866) 475-9886, Citigroup Global
Markets Inc. at (toll- free) (800) 558-3745 and J.P. Morgan
Securities Inc. at (toll-free) (866) 834- 4666. Questions regarding
the tendering of notes or requests for copies of the offer to
purchase, letter of transmittal and related materials should be
directed to Global Bondholder Services Corporation at (212)
430-3774 or (toll- free) (866) 470-4200. Headquartered in the
United States, International Paper has been a leader in the forest
products industry for more than 100 years. The company is currently
transforming its operations to focus on its global uncoated papers
and packaging businesses, which operate and serve customers in the
U.S., Europe, South America and Asia, as well as xpedx, an
extensive North American merchant distribution system.
International Paper is committed to environmental, economic and
social sustainability, and has a long-standing policy of using no
wood from endangered forests. To learn more, visit
http://www.internationalpaper.com/. This press release may contain
"forward-looking statements." Such forward- looking statements may
include, without limitation, statements about the company's market
opportunities, strategies, competition and expected activities and
expenditures, and at times may be identified by the use of words
such as "may," "will," "could," "should," "would," "project,"
"believe," "anticipate," "expect," "plan," "estimate," "forecast,"
"potential," "intend," "continue" and variations of these words or
comparable words. Forward-looking statements are based on current
expectations and assumptions, and inherently involve risks and
uncertainties. Accordingly, actual results may differ materially
from those expressed or implied by these forward-looking
statements. Factors that could cause or contribute to such
differences include, but are not limited to, the following: the
amount of notes tendered; the tender offer consideration paid by
the company for each series of notes (which is dependent on the
bid-side price of the applicable U.S. Treasury Security on the
second business day preceding the expiration date); and
satisfaction of the conditions of the tender offer contained in the
offer to purchase and related letter of transmittal. Other factors
that could cause or contribute to actual results differing
materially from such forward looking statements are discussed in
greater detail in the company's Securities and Exchange Commission
filings. You should not place undue reliance on our forward-looking
statements, which speak only as of the date of this press release.
We undertake no obligation to make any revision to the forward-
looking statements contained in this press release or to update
them to reflect events or circumstances occurring after the date of
this press release. INTERNATIONAL PAPER NOTES SUBJECT TO THE TENDER
OFFER The following table provides the estimated aggregate
principal amount validly tendered and not validly withdrawn for
each series of notes subject to the tender offer as of 5:00 p.m.,
New York City time, on Wednesday, Dec. 6, 2006. CUSIP Title of
Security Aggregate Principal Number Amount Outstanding 158525AQ8
7.75% Debentures due 2025 $123,642,000 158525AR6 7.35% Debentures
due 2025 $174,995,000 460146BD4 6.875% Debentures due 2029
$134,715,000 158525AT2 7.20% Debentures due 2026 $200,000,000
158525AV7 7.15% Debentures due 2027 $80,175,000 460146AP8 6.875%
Debentures due 2023 $190,000,000 313693AD5 10.0% Debentures due
2011 $23,421,000 313693AF0 8.875% Debentures due 2012 $95,855,000
460146BS1 3.80% Notes due 2008 $288,085,000 905530AH4 9.25%
Debentures due 2011 $124,800,000 460146BN2 6.75% Notes due 2011
768,634,000 460146BX0 5.50% Notes due 2014 $351,301,000 460146BQ5
5.85% Notes due 2012 $802,771,000 460146BV4 4.25% Notes due 2009
$407,115,000 460146BU6 5.30% Notes due 2015 $451,588,000 460146BZ5
5.25% Notes due 2016 $281,120,000 460146BY8 4.00% Notes due 2010
$414,350,000 158525AU9 6.65% Notes due 2037 $100,000,000 CUSIP
Acceptance Reference U.S. Aggregate Principal Number Priority
Treasury Security Amount Validly Level Tendered and Not Validly
Withdrawn 158525AQ8 1 4.50% U.S. Treasury Note $92,213,000 due Feb.
15, 2036 158525AR6 2 4.50% U.S. Treasury Note $131,163,000 due Feb.
15, 2036 460146BD4 3 4.50% U.S. Treasury Note $97,475,000 due Feb.
15, 2036 158525AT2 4 4.50% U.S. Treasury Note $39,600,000 due Feb.
15, 2036 158525AV7 5 4.50% U.S. Treasury Note $52,621,000 due Feb.
15, 2036 460146AP8 6 4.50% U.S. Treasury Note $95,717,000 due Feb.
15, 2036 313693AD5 7 4.625% U.S. Treasury Note $22,294,000 due Oct.
31, 2011 313693AF0 8 4.625% U.S. Treasury Note $79,301,000 due Nov.
15, 2016 460146BS1 9 4.875% U.S. Treasury Note $196,363,000 due
Oct. 31, 2008 905530AH4 10 4.625% U.S. Treasury Note $80,421,000
due Oct. 31, 2011 460146BN2 11 4.625% U.S. Treasury Note
$561,934,000 due Oct. 31, 2011 460146BX0 12 4.625% U.S. Treasury
Note $242,575,000 due Nov. 15, 2016 460146BQ5 13 4.625% U.S.
Treasury Note $683,912,000 due Nov. 15, 2016 460146BV4 14 4.875%
U.S. Treasury Note $339,621,000 due Oct. 31, 2008 460146BU6 15
4.625% U.S. Treasury Note $307,856,000 due Nov. 15, 2016 460146BZ5
16 4.625% U.S. Treasury Note $224,228,000 due Nov. 15, 2016
460146BY8 17 4.625% U.S. Treasury Note $360,367,000 due Nov. 15,
2009 158525AU9 18 4.50% U.S. Treasury Note $36,150,000 due Feb. 15,
2036 http://www.newscom.com/cgi-bin/prnh/20020701/IPLOGO
http://photoarchive.ap.org/ DATASOURCE: International Paper
CONTACT: Media - Amy Sawyer, +1-901-419-4312; or Investors - Brian
McDonald, +1-901-419-4957 Web site:
http://www.internationalpaper.com/
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