Sappi Limited on March 9, 2017 issued the formal 30 day notice for the redemption of the USD 400 million 7.75% senior notes by its subsidiary Sappi Papier Holding GmbH.
According to the announcement, the bonds mature in July 2017 but have a 3 month call window at par and SPH will use its available liquidity resources to repay the notes in full on 18 April 2017.
Steve Binnie, Sappi’s CEO, commented:
“The repayment of these bonds is another step in meeting the group’s objective to further reduce debt and finance charges, allowing more financial flexibility for future initiatives.”
Earlier Sappi Southern Africa annouced an investment into a new evaporation line at its pulp mill in Ngodwana, South Africa.
South African Pulp and Paper Industries (Sappi) Limited was founded in 1936. The company is headquartered in Johannesburg. It is focuses on commodity paper products, pulp, chemical cellulose and forest and timber products for Southern Africa and export markets. In 2013, it was reported as the world’s largest producer of dissolving wood pulp.