S&P rates Sappi notes BB-

S&P said it assigned its BB- issue rating to the planned €350 million senior unsecured notes, due 2028, to be issued by Sappi Papier Holding GmbH, a wholly owned subsidiary of Sappi Ltd., rated BB-. The recovery rating on the notes is 3, indicating an expectation of meaningful (50%-70%; rounded estimate: 55%) recovery in default.

Sappi intends to use the proceeds to redeem its €350 million 4% notes due 2023. “The transaction does not change our view of the company's credit quality as it is largely credit neutral, given that it represents a refinancing of existing debt,” the agency said in a press release.

S&P said its ratings and stable outlook on Sappi Ltd. and its debt are unchanged.

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