S&P: Sappi Papier notes BB

Standard & Poor's said it assigned its BB issue rating to the proposed $400 million senior secured notes due 2017 and $300 million senior secured notes due 2019 to be issued by Sappi Papier Holding GmbH and guaranteed by Sappi Ltd.

The agency said the recovery rating on the proposed senior secured notes is 2, indicating an expectation of substantial recovery in the event of a payment default, although coverage is at the low end of this range.

S&P said the recovery rating also eflects its understanding that Sappi will use the proceeds of the proposed notes to fully repay its existing $300 million senior secured notes due 2014 and the outstanding amount of the €350 million senior secured notes due 2014.

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