Suzano Sees Room to Go Heavy on Debt for International Paper.

Brazilian pulp company Suzano SA is considering taking on significant debt as it contemplates making a new bid for International Paper Co. Suzano could borrow up to $19 billion while maintaining a net debt for the combined company close to five times earnings before interest, taxes, depreciation, and amortization. This leverage level is within Suzano's previous reach since obtaining its investment grade rating in 2018. Suzano believes that a merger with International Paper would create a global powerhouse capable of generating enough cash to quickly reduce its debt-heavy balance sheet. However, the company has reassured investors that it will not make an offer that would jeopardize its investment grade rating. [Extracted from the article]