Sappi announces completion of refinancing transact


 

TIDMSAZ 
 
RNS Number : 1687Y 
Sappi Ld 
28 August 2009 
 
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|                                                           | Sappi Limited       | 
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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 EUR209 million, which remains undrawn.  In addition, the proceeds 
of EUR350 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 (EUR400 million) under its previous revolving credit facility 
and to repurchase all its outstanding EUR220 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 
EUR400 million with a new 5-year amortising maturity profile. 
 
 
Ralph Boëttger, 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: 
 
 
Jörg Pässler 
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 
 
 
André F Oberholzer 
Group Head Corporate Affairs 
Sappi Limited 
Tel +27 11 407 8044 
Mobile +27 83 235 2973 
e-Mail Andre.Oberholzer@sappi.com 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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