Sappi wraps oversubscribed $150 million tender offer for 6¾% notes

By Jennifer Chiou

New York, March 11 - Sappi Papier Holding GmbH announced the receipt of valid tenders for $304,946,000 of its $500 million of 6¾% guaranteed notes due 2012 in the Dutch auction cash tender offer for up to $150 million of the securities.

The company accepted $150 million of the notes at a total consideration of $1,055 per $1,000 principal amount of notes using a proration factor of 23.8%.

As already reported, the European subsidiary of a Johannesburg-based producer of coated fine paper said it would accept tenders within a bid range of $1,030 to $1,060 per $1,000 principal amount of notes, including a $20 early tender premium for those who tendered prior to 5 p.m. ET on Feb. 23.

The offer ended at 5 p.m. ET on March 10.

Sappi said it will also pay accrued interest, adding that settlement is expected on March 15.

Citigroup Global Markets Ltd. (800 558-3745 or call collect 212 723-6106; 44 20 7986 8969), J.P. Morgan Securities LLC (212 270-1200) and J.P. Morgan Securities Ltd. (44 20 7325 9633) were the dealer managers. Citibank, NA was the tender agent (44 20 7508 3867 or fax 44 20 3320 2405).

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