Sappi unit gets tenders for €54,393 more 11¾% notes since early date

By Susanna Moon

Chicago, Dec. 11 - PE Paper Escrow GmbH, a wholly owned subsidiary of Sappi Ltd., said it received tenders for €54,393 more of its €31,005,000 of outstanding euro-denominated 11¾% senior secured notes due 2014 since the consent deadline at 5 p.m. ET on Nov. 21.

The company will settle those notes on Dec. 13. The offer ended at midnight ET on Dec. 10.

As noted before, the company received tenders for €23,476,018.80, or 75.72%, of the notes by the consent payment deadline on Nov. 21.

The early tendered notes were settled on Nov. 26, and the proposed amendments to the notes indenture became operative on that date, according to a press release.

PE Paper solicited consents to amend the notes to eliminate or modify substantially all of the restrictive covenants and events of default. The company needed consents from holders representing a majority of the principal amount of outstanding notes, which was satisfied, and PE Paper executed a supplemental indenture.

On Nov. 23, PE Paper called the remaining notes at 105.875% of par plus accrued interest up to but excluding the redemption date of Dec. 24.

As previously noted, the total purchase price was €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 tendered their notes 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.

Notes could only be tendered 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, a previous press release noted.

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