Sappi Announces US$680 Million Multi-Currency Senior Secured Notes Offering

JOHANNESBURG, April 4, 2011 /PRNewswire/ -- Sappi Limited today announced the offering of US$680 million, in euros and dollars, equivalent aggregate principal amount of senior secured notes to be issued in two series due 2018 and 2021, respectively, in an offering that is exempt from the registration requirements of the U.S. Securities Act of 1933, as amended (the "Securities Act").  The notes will be issued by Sappi Papier Holding GmbH (the "issuer"), a subsidiary of Sappi Limited.  

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The net proceeds of the offering are expected to be used (a) to redeem the remaining outstanding amount of the issuer's 6.75% Guaranteed Notes due 2012 and (b) to repay approximately 200 million euros of the outstanding borrowings under our OeKB Term Loan Facility.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy securities.

This announcement shall not constitute an offer to sell or a solicitation of an offer to purchase any securities in the Unites 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 may not be offered or sold in the United States absent registration under the Securities Act of 1933 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.

The words "believe", "anticipate", "expect", "intend", "estimate", "plan", "assume", "positioned", "will", "may", "should", "risk" and other similar expressions, which are predictions of or indicate future events and future trends, which do not relate to historical matters, identify forward-looking statements. You should not rely on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are in some cases beyond our control and may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements (and from past results, performance or achievements). Certain factors that may cause such differences include but are not limited to:

• the highly cyclical nature of the pulp and paper industry (and the factors that contribute to such cyclicality, such as levels of demand, production capacity, production, input costs including raw material, energy and employee costs, and pricing);
• the impact on our business of the global economic downturn;
• unanticipated production disruptions (including as a result of planned or unexpected power outages);
• changes in environmental, tax and other laws and regulations;
• adverse changes in the markets for our products;
• consequences of our leverage, including as a result of adverse changes in credit markets that affect our ability to raise capital when needed;
• adverse changes in the political situation and economy in the countries in which we operate or the effect of governmental efforts to address present or future economic or social problems;
• the impact of investments, acquisitions and dispositions (including related financing), any delays, unexpected costs or other problems experienced in connection with dispositions or with integrating acquisitions and achieving expected savings and synergies; and
• currency fluctuations.

We undertake no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information or future events or circumstances or otherwise.

SOURCE Sappi Limited

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