NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO, OR TO ANY PERSON LOCATED OR RESIDENT IN, THE UNITED STATES OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE THIS ANNOUNCEMENT.
Johannesburg, 14 October 2022
Sappi Papier Holding GmbH (SPH), a wholly owned subsidiary of Sappi Limited (Sappi), announced yesterday the final results of its offer to purchase for cash a portion of its outstanding 3.125% Senior Notes due 2026 (the tender offer). The tender offer was launched by SPH on 4 October 2022 and expired on 12 October 2022.
Given the strong uptake from bondholders, Sappi decided to accept for purchase all the 2026 bonds tendered in the tender offer. As a result, SPH repurchased €209.6 million of the aggregate principal amount of the 2026 bonds in the tender offer, at a purchase price of 92.41% (plus accrued and unpaid interest), yielding a capital gain of €15.9 million. The settlement date for payment is expected to be on 17 October 2022.
Commenting on the successful conclusion of the process, Sappi CEO Steve Binnie said: "I am very pleased with the result of this bond repurchase. The transaction fits well with our overall strategy to use our free cash efficiently and reduce gross debt, further strengthening our financial position."
This announcement is neither an offer to purchase nor the solicitation of an offer to sell any of the securities described herein, nor shall there be any offer or sale of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The distribution of this announcement in certain jurisdictions may be restricted by law. Persons into whose possession this announcement comes, are required to inform themselves about, and to observe, any such restrictions.
A global leader in dissolving pulp and paper-based solutions, Sappi Limited is headquartered in Johannesburg, South Africa; has over 12,000 employees; manufacturing facilities on three continents, in seven countries (eight operations in Europe, four operations in North America and five operations in South Africa) and customers in over 150 countries worldwide
Sappi works closely with customers to provide relevant and sustainable dissolving pulp, paper (speciality, packaging and graphic), paper pulp, and biomaterial products and related services and innovations. Our market-leading range of paper products includes: flexible packaging, label, release liner, containerboard, graphic papers, casting release papers and in our Southern African region newsprint, uncoated graphic and business papers. These products serve the fashion, FMCG and industrial sectors. Our dissolving pulp products are used worldwide by converters to produce viscose fibre, pharmaceutical products as well as a wide range of household and consumer products.
Sappi drives product innovation and the development of new uses for its renewable resource (woodfibre) as well as for the biomass and other residues from its production processes. One such area is in the field of biomaterials (cellulose composites, nanocellulose and lignins), biochemicals including hemi-cellulose sugars and bio-energy forest products materials which Sappi believes will play a key role in its future range of products, both as commercial products and for applications within Sappi.
We continue to grow into a profitable and cash-generative diversified business with an exciting future in woodfibre, a renewable resource. www.sappi.com
on behalf of Sappi Limited
Tel + 27 (0) 11 502 7300
For further information
Group Head Sustainability and Investor Relations
Tel +27 (0)11 407 8391
Mobile +27 (0)83 666 6589
André F Oberholzer
Group Head Corporate Affairs
Tel +27 (0)11 407 8044
Mobile +27 (0)83 235 2973
Tel +32 (0)2 676 9621