Wrap Text
SAP - Sappi Limited - Sappi Prices US$700 Million Senior Secured Notes
Offering
Sappi Limited
(Registration number 1936/008963/06)
(Incorporated in the Republic of South Africa)
Share code: SAP ISIN: ZAE000006284); NYSE code SPP
("Sappi" or the "Company")
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY
CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.
Immediate release
Sappi Prices US$700 Million Senior Secured Notes Offering
June 20, 2012
Further to Sappi`s announcement on June 20, 2012 in connection with a bond
issue, Sappi Limited announced today that it priced its upsized bond offering
to raise US$700 million of new senior secured notes. The new notes will
consist of US$400 million notes due 2017 with a coupon of 7.750% per annum
and US$300 million notes due 2019 with a coupon of 8.375% per annum.
The net proceeds of the offering, together with cash on hand, will be used to
refinance US$700 million equivalent in aggregate principal amount of senior
secured notes due 2014, issued by PE Paper Escrow GmbH, another subsidiary of
Sappi Limited.
Ralph Boettger, CEO of Sappi Limited, commented:
"The pricing of this upsized bond offering represents a further step in the
execution of Sappi`s strategy, dealing with its high cost 2014 bonds and
improving its debt maturity profile. The impact of the transaction will be to
reduce Sappi`s ongoing cash finance charges by approximately US$27 million
per annum."
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
may not be offered or sold in the United States absent registration under the
Securities Act of 1933 (the "Securities Act") or an applicable exemption from
registration requirements. Any public offering of securities to be made in
the United States will be made by means of a prospectus that may be obtained
from the issuer and that will contain detailed information about the company
and management, as well as financial statements. This press release is being
issued pursuant to and in accordance with Rule 135e under the Securities Act.
This press release shall not be considered an "offer of securities to the
public" for purposes of the Luxembourg law on prospectus for public offering
dated 10 July 2005 or give rise to or require the publication of a prospectus
in any EU member state which has implemented the Prospectus Directive.
Within the United Kingdom, this announcement is directed only at persons
having professional experience in matters relating to investments who fall
within the definition of "investment professionals" in Article 19(5) of the
Financial Services and Markets Act 2000 (Financial Promotion) Order 2005
("relevant persons"). The investment or investment activity to which this
announcement relates is only available to and will only be engaged in with
relevant persons and person who receive this announcement who are not
relevant persons should not rely or act upon it.
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.
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;
- the emergence of new technologies and changes in consumer trends
including increased preferences for digital media;
- 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 restructurings, investments, acquisitions, dispositions
and other strategic initiatives (including related financing), any
delays, unexpected costs or other problems experienced in connection
with dispositions or with integrating acquisitions or implementing
restructurings or other strategic initiatives, 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:
Jorg Passler Stephen Blyth
Group Treasurer Deputy Group Treasurer
Sappi Group Treasury Sappi Group Treasury
Sappi International S.A. Sappi International S.A.
Tel +32 2676 9621 Tel +32 2676 9617
jorg.passler@sappi.com stephen.blyth@sappi.com
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: 21/06/2012 07:05:09 Supplied by www.sharenet.co.za
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