International Paper Closes Land Sale

The 900,000 acres of forest were sold for $1.1 billion in cash and notes.
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International Paper (IP) - Get Report said Monday evening that it closed a previously announced sale of 900,000 acres of forest in Louisiana, Texas and Arkansas.

IP sold the land for about $1.13 billion in cash and notes to TimberStar Southwest, a subsidiary of real estate investment trust

iStar Financial

(SFI)

.

The Stamford, Conn.-based company said that the deal, announced in April 2006, is part of a sale of the majority of its U.S. forestlands.

The parties also entered into a 50-year fiber supply agreement for IP's pulp and paper mills, and a 30-year fiber supply agreement for IP's wood products facilities, both at market prices, the company added.

The company's shares were trading down 14 cents at $33.80 Tuesday.

This story was created through a joint venture between TheStreet.com and IRIS.