Sappi to issue 1.5B rand of senior unsecured notes to repay a 1B rand bond that matures this June, and to fund a portion of the dissolving woodpulp conversion project at its mill in Nogodwana, South Africa

Debra Garcia

JOHANNESBURG , April 15, 2013 (press release) – Sappi Southern Africa Proprietary Limited (NYSE: SPP, JSE: SAP) is pleased to announce that on 16 April 2013 it will issue ZAR255,000,000 Senior Unsecured Floating Rate Notes due 16 April 2016 (the SSA04 Notes), ZAR500,000,000 Senior Unsecured Floating Rate Notes due 16 April 2018 (the SSA05 Notes) and ZAR745,000,000 Senior Unsecured 8.06% Fixed Rate Notes due 16 April 2020 (the SSA06 Notes) (the SSA04 Notes, the SSA05 Notes and the SSA06 Notes collectively the Notes or the Issue) which collectively amount to ZAR1,500,000,000 under its ZAR5,000,000,000 Domestic Medium Term Note Programme dated 22 June 2011. The Notes will be listed on the Interest Rate Market of the JSE Limited.

The proceeds of the Notes issued will be used to repay the maturing ZAR1,000,000,000 SMF 1 bond in June 2013, and the remainder will be used to fund a portion of the dissolving wood pulp conversion project at the Ngodwana Mill near Nelspruit.

Commenting on the placement, Sappi Limited Chief Executive Officer Ralph Boettger said: "In line with our strategy, this successful bond placement further reduces Sappi's cost of finance and further improves our debt maturity profile. We are also satisfied with the positive rates we were able to achieve."

Dealers
Nedbank Capital, a division of Nedbank Limited
Rand Merchant Bank , a division of First Rand Bank Limited

Legal Advisor
Bowman Gilfillan Incorporated

Source: Sappi Southern Africa Proprietary Limited

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