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Toronto, Oct 28, 2017 -- International Paper Company's (IP, Baa2 stable) announcement to transfer its North American consumer packaging business to Graphic Packaging International Inc. (Ba1 stable) for $660 million in cash and a 20.5% interest in the combined business is credit positive. The transfer will improve IP's margins and enable the company to focus on retained operations that have stronger competitive positions, higher return characteristics, and better long-term growth prospects. Moreover, the deal structure reinforces IP's commitment to deleveraging to 3x by the end of 2018.

For additional commentary, please refer to the associated issuer comment available on Moodys.com.

Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history.

Headquartered in Memphis, Tennessee, IP is a leading global producer of packaging products, market pulp and uncoated freesheet paper, with sales of about $22 billion for the twelve months ended June 2017. The transaction is expected to close in early 2018, subject to the receipt of regulatory approval and other customary closing conditions.

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

Ed Sustar
Senior Vice President
Corporate Finance Group
Moody's Canada Inc.
70 York Street
Suite 1400
Toronto, ON M5J 1S9
Canada
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Donald S. Carter, CFA
MD - Corporate Finance
Corporate Finance Group
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Releasing Office:
Moody's Canada Inc.
70 York Street
Suite 1400
Toronto, ON M5J 1S9
Canada
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

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