International Paper Co. slashed its quarterly dividend by 90 percent to 2.5 cents on Monday to save about $100 million a year and use the extra cash to pay the debt.

According to the Associated Press reports, the largest U.S paper and packaging maker has reduced its dividend to 2.5 cents from 25 cents, a share payable on June 15 to shareholders of record as of May 18 effectively.

Chairman and Chief Executive John Faraci said in a statement, This decision, which reflects our strong commitment to maintaining our current credit ratings, is a proactive step to maximize our financial flexibility, along with our earlier decisions to reduce capital investment, decrease overhead spending and headcount, and freeze salaries.

Shares of International Paper fell 4.6 percent to $5.44 in early trade on the New York Stock Exchange.