SAPPI LIMITED - Sappi prices Senior Secured Notes offering

Sappi prices Senior Secured Notes offering

Sappi Limited
Reg No 1936/008963/06
(Incorporated in the Republic of South Africa)
JSE Code SAP
ISIN code ZAE000006284
(“Sappi” or “the Company”)



Announcement

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.

For immediate release


Sappi prices €350 million Senior Secured Notes offering

Further to Sappi’s announcement on March 14, 2016 in connection with a bond issue, Sappi
Limited announced today that it priced its bond offering to raise €350 million of new senior
secured notes due 2023 with a coupon of 4.0% per annum.

The net proceeds of the offering will be used to redeem all of Sappi Papier Holding GmbH’s
US$350 million senior secured notes due 2021.

Steve Binnie, CEO of Sappi Limited, commented as follows on the bond offering: “I am pleased
that through this offering our balance sheet is further strengthened, our debt maturity profile is
enhanced and our annual cash finance charges reduced by US$7.8 million. This offering is one
more step in the execution of our strategy and in positioning the group for further growth.”


This press release is for information purposes only and does not constitute any offer to sell or the
solicitation of an offer to buy any security in the United States or in any other jurisdiction. The
notes have not been and will not be registered under the U.S. Securities Act of 1933, as
amended (the “Securities Act”) or applicable state or foreign securities laws and may not be
offered or sold in the United States absent registration under federal or applicable state securities
laws or an applicable exemption from such 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 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. Furthermore, this press
release constitutes neither an offer to sell nor a solicitation to buy securities nor shall it give rise to
or require the publication of a prospectus in any EU member state which has implemented the
Prospectus Directive.

This announcement does not constitute an invitation or offer to underwrite, subscribe for or
otherwise acquire or dispose of any securities nor is it intended to be an inducement to engage in
investment activity for the purpose of Section 21 of the Financial Services and Markets Act 2000
of the United Kingdom.

This announcement is directed only at (i) persons who are outside the United Kingdom; (ii)
persons in the United Kingdom who have professional experience in matters relating to
investments and who are investment professionals within the meaning of Article 19(5) of the
Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) of the
United Kingdom (the “Financial Promotion Order”); (iii) persons who fall within Articles 49(2)(a) to
(d) (“high net worth companies, unincorporated associations etc.”) of the Financial Promotion
Order; and (iv) any other person to whom this announcement may be lawfully directed (all such
persons together being referred to as “relevant persons”). Any investment or investment activity
to which this announcement relates is only available to relevant persons and will be engaged in
only with relevant persons. This announcement must not be acted on or relied on by persons
who are not relevant persons.

The offer of the notes does not, nor is it intended to, constitute an “offer to the public” (as that
term is defined in the South African Companies Act, 2008 (the “SA Companies Act”)) and does
not, nor is it intended to, constitute a prospectus prepared and registered under the SA
Companies Act. No South African resident or offshore subsidiary of a South African resident may
subscribe for or purchase any of the notes or beneficially own or hold any of the notes unless
specific approval has been obtained from the South African Reserve Bank by such person or
such subscription, purchase or beneficial holding or ownership is otherwise permitted under the
South African exchange control regulations or the rulings promulgated thereunder.

15 March 2016
Sponsor: UBS South Africa (Pty) Limited

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 and 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 a 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.

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