Johannesburg, 18 November 2020
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW
Sappi Limited today announced the completion and final terms of an offering of senior, unsecured, convertible unlisted registered bonds due in 2025 with an aggregate principal amount of ZAR1,800,000,000 by Sappi Southern Africa Limited (Sappi Southern Africa). The bonds will, subject to certain conditions including the passing of shareholder resolutions, be convertible into ordinary shares of Sappi Limited.
The bonds will be issued at par and carry a fixed term interest rate coupon of 5.25% per annum. The initial conversion price of ZAR 33.1636 was set at a premium of 32.5% above the reference share price of ZAR25.0291.
Sappi Southern Africa intends to use the net proceeds from the Bonds to fund the remaining capital expenditure required to expand and upgrade its Saiccor mill. The Saiccor investment is currently approximately 80% complete and is expected to be completed by mid-2021, adding some 110,000 tons of capacity. This additional capacity is fully committed to existing customers.
Commenting on the successful conclusion of the process, Sappi Limited CEO Steve Binnie said: “I am very pleased with the strong support Sappi received with this bond. The transaction fits well in our overall debt maturity profile, attracts lower interest rate charges and further strengthens our financial position.” ENDS
Issued by:
Brunswick
on behalf of Sappi Limited
Tel +27 (0)11 502 7300
For more information:
André F Oberholzer
Group Head Corporate Affairs
Sappi Limited
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
