INTERNATIONAL PAPER CO /NEW/IP
INTERNATIONAL PAPER CO /NEW/ Debt Disclosure
DEBT AND LINES OF CREDIT
The borrowing capacity of the Company's commercial paper program is $1.0 billion supported by its $1.4 billion
credit agreement. Under the terms of this program, individual maturities on borrowings may vary, but not exceed
one year from the date of issue. Interest bearing notes may be issued either as fixed or floating rate notes. The
Company had no borrowings outstanding as of December 31, 2025 and December 31, 2024 under this program.
At December 31, 2025, the Company's credit facilities totaled $1.9 billion, excluding the DS Smith credit facilities
discussed below. The credit facilities generally provide for interest rates at a floating rate index plus a pre-
determined margin dependent upon International Paper's credit rating. The credit facilities include a $1.4 billion
contractually committed bank facility with a maturity date of June 2028. The liquidity facilities also include up to $500
million of uncommitted financings based on eligible receivables balances under a receivable securitization program
that expires in June 2026. As of December 31, 2025 and December 31, 2024, the Company had no borrowings
outstanding under the program.
Below is a table of the foreign denominated credit facilities:
In millions | December 31, 2025 | ||
Credit Facilities | Borrowing Currency | USD Equivalent Capacity | USD Equivalent Outstanding |
2.834% Amortizing credit facility - due 2026-2029 | EUR | $191 | $191 |
Floating rate instruments: | |||
Committed bank facility maturing May 2027 | GBP, EUR, USD | 1,684 | 1,158 |
Uncommitted facility | GBP, EUR, USD | 67 | 65 |
Committed bank facility maturing December 2026 | GBP, EUR, USD | 70 | — |
Total | $2,012 | $1,414 | |
Following the DS Smith acquisition, International Paper assumed foreign denominated debt of DS Smith in various
currencies with an approximated value of $3.6 billion. In March 2025, the Company amended and restated DS
Smith's credit facility agreements and entered into agreements to guarantee the outstanding notes of DS Smith.
A summary of all long-term debt follows:
In millions at December 31 | 2025 | 2024 |
7.350% notes – due 2025 | $— | $39 |
7.750% notes – due 2025 | — | 22 |
0.875% notes – due 2026 (EUR) | 705 | — |
7.200% notes – due 2026 | 58 | 58 |
6.400% notes – due 2026 | 5 | 5 |
4.375% notes – due 2027 (EUR) | 998 | — |
7.150% notes – due 2027 | 7 | 7 |
6.875% notes – due 2029 | 10 | 10 |
2.875% notes – due 2029 (GBP) | 337 | — |
4.500% notes – due 2030 (EUR) | 764 | — |
5.000% notes – due 2035 | 407 | 407 |
6.650% notes – due 2037 | 3 | 3 |
8.700% notes – due 2038 | 86 | 86 |
7.300% notes – due 2039 | 453 | 453 |
6.000% notes – due 2041 | 585 | 585 |
4.800% notes – due 2044 | 686 | 686 |
5.150% notes – due 2046 | 449 | 449 |
4.400% notes – due 2047 | 647 | 647 |
4.350% notes – due 2048 | 740 | 740 |
Floating rate notes – due 2027 – 2030 (a) | 308 | 308 |
Environmental and industrial development bonds – due 2025 – 2031 (b) | 437 | 394 |
Floating rate term loan - due 2028 | 600 | 600 |
Foreign denominated credit facilities | 1,414 | — |
Total principal | 9,699 | 5,499 |
Capitalized leases | 71 | 43 |
Premiums, discounts, and debt issuance costs | (35) | (39) |
Terminated interest rate swaps | 48 | 51 |
Other | 48 | 1 |
Total (c) | 9,831 | 5,555 |
Less: current maturities | 992 | 193 |
Long-term debt | $8,839 | $5,362 |
(a)The weighted average interest rate on these notes was 4.0% in 2025 and 4.6% in 2024.
(b)The weighted average interest rate on these bonds was 3.7% in 2025 and 2.8% in 2024.
(c)The fair market value was approximately $9.6 billion at December 31, 2025 and $5.2 billion at December 31, 2024. Debt fair value
measurements use Level 2 inputs.
At December 31, 2025, contractual obligations for future payments of debt maturities (including finance lease
liabilities disclosed in Note 10 - Leases and excluding the timber monetization structures disclosed in Note 15 -
Variable Interest Entities) by calendar year were as follows over the next five years: 2026 – $992 million; 2027 –
$2.6 billion; 2028 – $739 million; 2029 – $381 million; and 2030 – $807 million.
The Company’s financial covenants require the maintenance of a minimum net worth, as defined in our debt
agreements, of $9.0 billion and a total debt-to-capital ratio of less than 60%. Net worth is defined as the sum of
common stock, paid-in capital and retained earnings, less treasury stock plus any cumulative goodwill impairment
charges. The calculation also excludes accumulated other comprehensive income/(loss) and both the current and
long-term Nonrecourse Financial Liabilities of Variable Interest Entities. The total debt-to-capital ratio is defined as
total debt divided by the sum of total debt plus net worth. As of December 31, 2025, we were in compliance with our
debt covenants.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 19, 2020 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 25, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.