By Susanna Moon
Chicago, April 15 - Sappi Southern Africa (Pty.) Ltd. said it plans to issue ZAR 255 million senior floating-rate notes due April 16, 2016, ZAR 500 million senior floating-rate notes due April 16, 2018 and ZAR 745 million 8.06% senior notes due April 16, 2020.
The notes will be issued under the company's ZAR 5 billion domestic medium-term note program dated June 22, 2011, according to a company press release.
Proceeds will be used to repay the maturing ZAR 1 billion SMF 1 bond in June, with the rest of the proceeds to be used to help fund the dissolving wood pulp conversion project at the Ngodwana Mill near Nelspruit.
"In line with our strategy, this successful bond placement further reduces Sappi's cost of finance and further improves our debt maturity profile," Sappi chief executive officer Ralph Boettger said in a press release.
"We are also satisfied with the positive rates we were able to achieve."
Nedbank Capital, a division of Nedbank Ltd., and Rand Merchant Bank, a division of First Rand Bank Ltd., were the dealers.
Sappi makes coated fine paper and is based in Johannesburg.
| Issuer: | Sappi Southern Africa (Pty.) Ltd.
|
| Issue: | Senior notes
|
| Amount: | ZAR 1.5 billion
|
| Dealers: | Nedbank Capital, a division of Nedbank Ltd., and Rand Merchant Bank, a division of First Rand Bank Ltd.
|
| Settlement date: | April 16
|
|
|
| Notes due 2016
|
| Amount: | ZAR 255 million
|
| Maturity: | April 16, 2016
|
| Securities: | Senior floating-rate notes
|
|
|
| Notes due 2018
|
| Amount: | ZAR 500 million
|
| Maturity: | April 16, 2018
|
| Securities: | Senior floating-rate notes
|
|
|
| Notes due 2020
|
| Amount: | ZAR 745 million
|
| Maturity: | April 16, 2020
|
| Securities: | Senior notes
|
| Coupon: | 8.06%
|
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