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SAP - Sappi Limited - Sappi Prices US$700 Million Senior Secured Notes

Release Date: 21/06/2012 07:05
Code(s): SAP
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 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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