International Paper Company (IP) Enters New $750M Revolving Credit Facility, Has Not Drawn Down Lines

International Paper Company (NYSE: IP) disclosed that on March 25, 2020, it entered into a $750 million 364-day revolving credit agreement with a syndicate of banks and other financial institutions, including Sumitomo Mitsui Banking Corporation; Banco Bilbao Vizcaya Argentaria, S.A., New York Branch; BNP Paribas and Credit Agricole Corporate and Investment Bank and Sumitomo Mitsui Banking Corporation, as administrative agent.

The $750 million revolving credit agreement augments the Company’s access to liquidity due to current macroeconomic conditions and supplements the Company’s existing $1,500,000,000 5-Year Credit Agreement, dated as of December 12, 2016 (the “Existing Revolving Credit Agreement”). As of the date of this filing, the Company has not drawn on either agreement.

Borrowings under the Revolving Credit Agreement generally will either bear interest at (i) a rate per annum equal to the Applicable Margin (as defined in the Revolving Credit Agreement) plus a base rate equal to the highest of (a) the Federal Funds Rate (as defined in the Revolving 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 the Administrative Agent as its “prime rate”, and (c) the Adjusted Eurodollar Rate (as defined in the Revolving Credit Agreement) plus one percentage point or (ii) at a rate per annum equal to the Adjusted Eurodollar Rate plus the Applicable Margin.

The Revolving Credit Agreement contains customary affirmative and negative covenants, as well as customary events of default, substantially similar to those included in the Company’s Existing Revolving Credit Agreement.

The foregoing description of the Revolving Credit Agreement does not purport to be complete, and is qualified in its entirety by reference to the full text of the Revolving Credit Agreement, a copy of which will be filed as an exhibit to an amendment to this Current Report on Form 8-K