International Paper Co., Memphis, Tenn., announced in a news release it sold $2.3 billion in bonds on Tuesday, with $500 million of the proceeds being contributed to its U.S. defined benefit plans.
The company had contributed $250 million to the plans in the first six months of 2016, and during that time also offered a lump-sum payment window to about 47,000 terminated vested participants who had yet to retire in one of its U.S. defined benefit plans — the Retirement Plan of International Paper Co. That number represented about $3 billion in projected benefit obligations, and the company paid out about $1.2 billion to participants who took the offer, according to SEC filings earlier this year.
The company announced it has priced $1.1 billion of 3% senior unsecured notes due 2027 and $1.2 billion of 4.4% senior unsecured notes due 2047.
As of Dec. 31, the company's U.S. defined benefit plan assets totaled $10.923 billion, with projected benefit obligations of $14.438 billion, for a funding ratio of 75.7%, according to the company's most recent 10-K filing.
Christa Allen, a company spokeswoman, did not provide further information.
