Sappi begins tender offer for up to €150 million notes due 2026

By Marisa Wong

Los Angeles, Oct. 4 – Sappi Papier Holding GmbH is offering to purchase for cash its €443,128,000 outstanding 3 1/8% senior notes due April 15, 2026 (ISIN: XS1961852750), according to a notice.

The company has set the target acceptance amount at €150 million aggregate principal amount.

The company noted that the tender offer is only for the Regulation S notes and excludes the Rule 144A notes (ISIN: XS1961852248) of the same series.

The purchase price will be based on the interpolated mid-swap rate and a purchase spread of 250 basis points. Pricing will be determined at 7 a.m. ET on Oct. 11.

The company will also pay accrued interest from and including Oct. 15 to but excluding the settlement date.

The offer will expire at 11 a.m. ET on Oct. 10.

Settlement is expected to be no later than Oct. 17.

If the tender cap is exceeded, notes may be accepted for purchase on a pro rata basis.

The company said the tender offer is being made as part of its liability management and to decrease its overall level of gross debt.

ING Bank NV (liability.management@ing.com) and J.P. Morgan SE (liability_management_EMEA@jpmorgan.com) are acting as dealer managers.

Kroll Issuer Services Ltd. (attn.: Jacek Kusion, +44 20 7704 0880, sappi@is.kroll.com) is the tender agent.

Sappi is a Gratkorn, Austria-based paper and pulp producer and a subsidiary of Johannesburg-based Sappi Ltd.

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