Sappi Prices US$705 Million Multi-Currency Senior Secured Notes Offering
JOHANNESBURG, April 6, 2011 /PRNewswire/ -- Further to Sappi's announcement on Monday, 4 April 2011, in connection with a bond issue, Sappi (NYSE: SPP) announced today that it priced its upsized bond offering to raise approximately US$705 million equivalent of new senior secured notes. The new notes will be issued by Sappi Papier Holding GmbH in a series of 250 million pound notes maturing in 2018 issued at a price of 100% with a coupon of 6.625%, and a series of US$350 million maturing in 2021 issued at a price of 100% with a coupon of 6.625%.
The transaction is subject to customary closing conditions and settlement is expected to occur on 14 April 2011.
The net proceeds of the offering are expected to be used (a) to redeem the remaining outstanding amount of our 6.75% Guaranteed Notes due 2012, (b) to repay approximately 200 million pounds of the outstanding borrowings under our OeKB Term Loan Facility and (c) for general corporate purposes. The offering is part of a larger financing in connection with which we have also received commitments, subject to various conditions, for an aggregate amount of up to 350 million pounds under a new or amended and restated Revolving Credit Facility maturing in 2016.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 have not been registered under the Securities Act of 1933 (the "Securities Act") and may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from registration requirements. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act. Forward looking statement 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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV