Sappi unit gets tenders for 75.72% of €31 million 11¾% notes due 2014

By Toni Weeks

San Diego, Nov. 26 - PE Paper Escrow GmbH, a wholly owned subsidiary of Sappi Ltd., said it received tenders for €23,476,018.80, or 75.72%, of its €31,005,000 of outstanding euro-denominated 11¾% senior secured notes due 2014 by the consent payment deadline, 5 p.m. ET on Nov. 21.

PE Paper was also soliciting consents to amend the notes to eliminate or modify substantially all of the restrictive covenants and events of default. The company needed consents from noteholders representing a majority of the principal amount of outstanding notes, which has been satisfied, and PE Paper has executed a supplemental indenture, according to a press release.

The total purchase price is €1,066.25, including an early payment of €7.50, for each €1,000 principal amount of notes tendered by the consent payment deadline. Holders who tender after the early deadline will receive €1,058.75 per €1,000 of notes.

The company also will pay accrued interest up to but excluding the settlement date.

The tender offer will end at midnight ET on Dec. 10.

Notes may be tendered only in minimum denominations of €50,000 and integral multiples of €1,000, unless waived by PE Paper, provided that holders tender all of their notes, the release noted.

The company said it plans to call any notes that remain after the offer ends at 105.875% of par.

PE Paper and its affiliates also may acquire notes through open-market purchases, privately negotiated transactions, tender offers, exchange offers, redemptions or otherwise.

DF King Worldwide (+44 20 7920 9700 or sappi@king-worldwide.com) is the tender and information agent. The trustee is Bank of New York Mellon. The security agent is J.P. Morgan Europe Ltd. J.P. Morgan Securities plc (attn: liability management group or +44 207 134 3166) is the dealer manager and consent solicitation agent.

The company is a Vienna-based subsidiary of Sappi Ltd., which makes coated fine paper and is based in Johannesburg.

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