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SAP - Sappi Limited - Sappi Announces completion of refinancing transactions
Sappi Limited
(Registration number 1936/008963/06)
(Incorporated in the Republic of South Africa)
Share code: SAP & ISIN: ZAE000006284
("Sappi" or the "Company")
Press release
Johannesburg
28 August 2009
Sappi Announces Completion of Refinancing Transactions
Sappi Limited today announced the completion of a series of refinancing
transactions that Sappi undertook in order to improve its debt maturity profile
and strengthen its balance sheet.
As part of the refinancing, Sappi entered into a new revolving credit facility
in an amount of Euro209 million, which remains undrawn. In addition, the
proceeds of Euro350 million and US$300 million senior secured notes (the
"notes"), which were issued on 29 July 2009 by a special purpose vehicle in an
offering exempt from the registration requirements of the U.S. Securities Act of
1933, as amended, were released and made available to the Sappi group.
Sappi used the proceeds from the offering of the notes and a portion of its
available cash on hand to repay certain short-term indebtedness, including all
amounts outstanding (Euro400 million) under its previous revolving credit
facility and to repurchase all its outstanding Euro220 million vendor loan notes
issued to M-real. The vendor loan notes have been repurchased at a price of
86.5% of their principal amount.
Sappi also refinanced the OeKB term loan (previously due 2010) in an amount of
Euro400 million with a new 5-year amortising maturity profile.
Ralph Boettger, CEO of Sappi Limited, said:
"The successful completion of our refinancing will take care of our liquidity
and significant debt maturities for at least the next three years. Sappi has a
strong cash position of approximately US$600 million and has approximately
US$300 million of undrawn availability under our new revolving credit facility.
However, as a result of interest rates available in current financial market
conditions, we will have a substantial increase in finance costs. We are
committed to reducing our net debt by approximately 25% to 30% over the next
three years thus also reducing our finance costs."
Forward-looking statements
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. Undue reliance should
not be placed on such statements because, by their nature, they are subject to
known and unknown risks and uncertainties and can be affected by other factors,
that could cause actual results and company plans and objectives to differ
materially from those expressed or implied in the forward-looking statements (or
from past results). Such risks, uncertainties and factors include, but are not
limited to, the impact of the global economic downturn, 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), adverse
changes in the markets for the group`s products, consequences of substantial
leverage, including as a result of adverse changes in credit markets that affect
our ability to raise capital when needed, changing regulatory requirements,
unanticipated production disruptions, 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 with integrating
acquisitions and achieving expected savings and synergies and currency
fluctuations. The company undertakes 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.
About Sappi Limited
Sappi, a global pulp and paper company headquartered in Johannesburg, South
Africa, is the world`s leading producer of coated fine paper used in the
production of glossy magazines, calendars, annual reports and brochures. The
company has significant businesses in forests, pulp, coated speciality paper,
packaging grades, uncoated fine paper and newsprint in Africa. Sappi is also the
world`s largest producer of chemical cellulose (dissolving pulp) used in the
manufacture of viscose staple fibre and consumer and pharmaceutical products.
With 17,000 employees worldwide and production facilities in ten countries on
four continents, Sappi has customers in over 100 countries and is listed on the
Johannesburg Securities Exchange (SAP), the New York Stock Exchange (SPP) and
the London Stock Exchange (SAZ).
ENDS
Issued by Brunswick South Africa on behalf of Sappi Limited
Tel + 27 11 502 7300
Fax + 27 11 268 5747
For further information contact:
Jorg Passler
Group Treasurer
Sappi Limited
Tel +32 2 676 9621
Mobile +32 495 588 621
e-Mail jorg.passler@sappi.com
Mark Thompson
Chief Financial Officer
Sappi Limited
Tel +27 11 407 8311
Mobile +27 82 876 2446
e-Mail Mark.Thompson@sappi.com
Andre F Oberholzer
Group Head Corporate Affairs
Sappi Limited
Tel +27 11 407 8044
Mobile +27 83 235 2973
e-Mail Andre.Oberholzer@sappi.com
Date: 28/08/2009 08:00:01 Supplied by www.sharenet.co.za
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