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SAPPI LIMITED - Sappi issues redemption notice for $400 million 2017 bonds

Release Date: 09/03/2017 15:10
Code(s): SAP     PDF:  
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Sappi issues redemption notice for $400 million 2017 bonds


Sappi Limited
(Incorporated in the Republic of South Africa)
Registration number: 1936/008963/06
JSE share code: SAP
ISIN code: ZAE000006284
("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.

Sappi issues redemption notice for $400 million 2017 bonds

Sappi Limited today issued the formal 30 day notice for the redemption of the $400 million
7.75% senior notes by its subsidiary Sappi Papier Holding GmbH (“SPH”). The bonds
mature in July 2017 but have a 3 month call window at par and SPH will use its available
liquidity resources to repay the notes in full on 18 April 2017.

Commenting on this development, Sappi Chief Executive Officer Steve Binnie said: “The
repayment of these bonds is another step in meeting the group’s objective to further reduce
debt and finance charges, allowing more financial flexibility for future initiatives”.

END

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.

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);
                                                                                      Page 3 of 3


         •    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                Issued by

André F Oberholzer                     Brunswick
Group Head Corporate Affairs           on behalf of Sappi Limited
Sappi Limited                          Tel + 27 (0) 11 502 7300
Tel +27 (0)11 407 8044
Mobile +27 (0)83 235 2973
Andre.Oberholzer@sappi.com

Graeme Wild
Group Head Investor Relations and
Sustainability
Sappi Limited
Tel +27 (0)11 407 8391
Mobile +27 (0)83 320 8624
Graeme.Wild@sappi.com



Johannesburg
09 March 2017

Sponsor:
UBS South Africa (Pty) Ltd

Date: 09/03/2017 03:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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