International Paper announced it has entered into an agreement with The Prudential Insurance Company of America (NYSE: PRU) to purchase a group annuity contract and transfer approximately $1.3 billion of International Paper's U.S. qualified pension plan projected benefit obligations. The transaction will be funded with pension plan assets, and at the end of 2017, Prudential will assume responsibility for pension benefits and annuity administration for approximately 45,000 former employees or their beneficiaries receiving less than $450 in monthly benefit payments from the plan. The transaction is expected to close on October 3, 2017, subject to customary closing conditions. Click Read More below for additional detail.
Caraustar Industries, Inc. announced a minimum price increase of 7.0% on all paper tube and core products. The increase will be effective starting with shipments on July 18, 2018.
The increase is in response to strong market dynamics and inflationary cost pressures in transportation (both inbound and outbound) and chemicals.