Business News

International Paper To Divest 143,000 Acres of Real Estate Properties

Tuesday 03. March 2009 - International Paper (NYSE: IP) announced today that it plans to divest approximately 143,000 acres of properties located in the southeastern United States in a transaction with American Timberlands Fund I, LP (the "Partnership").

The transaction value is approximately $275 million. International Paper will sell approximately 114,000 acres to the Partnership for $220 million in cash and will contribute 29,000 acres, with a value of $55 million, in exchange for a 20 percent interest in the Partnership.

The transaction value is subject to various adjustments at closing and is contingent upon the Partnership raising $220 million to finance the transaction. The transaction is expected to close in mid-June.

“This was an attractive opportunity, and we intend to use the proceeds received at closing to pay down debt,” said John Faraci, International Paper’s chairman and chief executive officer. “This is consistent with our commitment to strengthening our balance sheet and maintaining our financial flexibility.”