| Wed 6 Apr 2011, 8:30 | | SAP - Sappi limited - Sappi Prices US$705 Million multi-currency Senior Secured |
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SAP
SAVVI
SAP - Sappi limited - Sappi Prices US$705 Million multi-currency Senior Secured
Notes Offering
SAPPI LIMITED
Registration Number 1936/008963/06
(Incorporated in the Republic of South Africa)
JSE Code: SAP
ISIN: ZAE000006284
NYSE Code: SPP
Announcement
Sappi Prices US$705 Million multi-currency Senior Secured Notes Offering
5 April 2011
Further to Sappi`s announcement on Monday, 4 April 2011, in connection with a
bond issue, Sappi announced today that it priced its upsized bond offering to
raise approximately US$705 million equivalent of new senior secured notes. The
new notes will be issued by Sappi Papier Holding GmbH in a series of Euro250
million notes maturing in 2018 issued at a price of 100% with a coupon of
6.625%, and a series of US$350 million maturing in 2021 issued at a price of
100% with a coupon of 6.625%.
The transaction is subject to customary closing conditions and settlement is
expected to occur on 14 April 2011.
The net proceeds of the offering are expected to be used (a) to redeem the
remaining outstanding amount of our 6.75% Guaranteed Notes due 2012, (b) to
repay approximately Euro200 million of the outstanding borrowings under our OeKB
Term Loan Facility and (c) for general corporate purposes. The offering is part
of a larger financing in connection with which we have also received
commitments, subject to various conditions, for an aggregate amount of up to
Euro350 million under a new or amended and restated Revolving Credit Facility
maturing in 2016.
This announcement shall not constitute an offer to sell or a solicitation of an
offer to purchase any securities in the United States, and shall not constitute
an offer, solicitation or sale in any state or jurisdiction in which such an
offer, solicitation or sale would be unlawful. The securities have not been
registered under the Securities Act of 1933 (the "Securities Act") and may not
be offered or sold in the United States absent registration under the Securities
Act or an applicable exemption from registration requirements. This press
release is being issued pursuant to and in accordance with Rule 135c under the
Securities Act.
Forward looking statement
Certain statements in this release that are neither reported financial results
nor other historical information, are forward-looking statements, including but
not limited to statements that are predictions of or indicate future earnings,
savings, synergies, events, trends, plans or objectives.
The words "believe", "anticipate", "expect", "intend", "estimate", "plan",
"assume", "positioned", "will", "may", "should", "risk" and other similar
expressions, which are predictions of or indicate future events and future
trends, which do not relate to historical matters, identify forward-looking
statements. You should not rely on forward-looking statements because they
involve known and unknown risks, uncertainties and other factors which are in
some cases beyond our control and may cause our actual results, performance or
achievements to differ materially from anticipated future results, performance
or achievements expressed or implied by such forward-looking statements (and
from past results, performance or achievements). Certain factors that may cause
such differences include but are not limited to:
- the highly cyclical nature of the pulp and paper industry (and the factors
that contribute to such cyclicality, such as levels of demand, production
capacity, production, input costs including raw material, energy and
employee costs, and pricing);
- the impact on our business of the global economic downturn;
unanticipated production disruptions (including as a result of planned or
unexpected power outages);
- changes in environmental, tax and other laws and regulations;
- adverse changes in the markets for our products;
- consequences of our leverage, including as a result of adverse changes in
credit markets that affect our ability to raise capital when needed;
- adverse changes in the political situation and economy in the countries in
which we operate or the effect of governmental efforts to address present
or future economic or social problems;
- the impact of investments, acquisitions and dispositions (including related
financing), any delays, unexpected costs or other problems experienced in
connection with dispositions or with integrating acquisitions and achieving
expected savings and synergies; and
- currency fluctuations.
We undertake no obligation to publicly update or revise any of these forward-
looking statements, whether to reflect new information or future events or
circumstances or otherwise.
For further information contact:
Robert Hope Andre F Oberholzer
Group Head Strategic Development Group Head Corporate Affairs
Sappi Limited Sappi Limited
Tel +27 (0) 11 407 8492 Tel +27 (0) 11 407 8044
Robert.Hope@sappi.com Mobile +27 (0) 83 235 2973
Andre.Oberholzer@sappi.com
Graeme Wild
Group Investor Relations Manager
Sappi Limited
Tel +27 11 407 8391
Mobile +27 (0) 83 320 8624
Graeme.Wild@sappi.com
Date: 06/04/2011 08:30:01 Produced by the JSE SENS Department.
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