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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
euro 250 million 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
euro 200 million 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 euro 350 million 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.