South Africa’s Sappi unit releases security over 7¾%, 3 3/8%, 4% notes

By Susanna Moon

Chicago, Aug. 31 – Sappi Ltd. released all of the security to secure Sappi Papier Holding GmbH’s $400 million 7¾% senior secured notes due 2017, €350 million 3 3/8% senior secured notes due 2022 and €350 million 4% senior secured notes due 2023.

The security also was released on Sappi Group’s €465 million revolving credit facility, according to a company announcement.

To release the security, Sappi was required to meet conditions under the terms of the revolver and note indentures, including one under the facility that each of Sappi’s two most recent compliance certificates certified that Sappi’s leverage ratio was equal to or less than 2.5 times.

“The release of the security package reflects the improvement in the financial position of the Sappi group, allowing more flexibility for future initiatives,” Sappi chief executive officer Steve Binnie said in the company press release.

Sappi is a Johannesburg, South Africa-based coated paper manufacturer.

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