[0] Sappi Raises EURO 900 Million at Libor Plus 0.55%.Business Editors JOHANNESBURG, South Africa--(BUSINESS WIRE)--July 12, 2001 Sappi Limited (NYSE NYSE See: New York Stock Exchange : SPP (1) (Scalable Parallel Processor) A multiprocessing computer that can be upgraded by adding more CPUs. (2) (Standard Parallel Port) The Centronics parallel port that was used on the first PCs. ), the world's largest producer of coated fine paper, announced today that it had successfully concluded a EURO 900 million syndicated loan Syndicated Loan A very large loan in which a group of banks work together to provide funds for one borrower. There is usually one lead bank that takes a small percentage of the loan and syndicates the rest to other banks. Notes: Also known as a "syndicated bank facility. facility arranged and underwritten by three global banks, ABN AMRO ABN AMRO Algemene Bank Nederland-Amsterdam Roterdam Bank (Dutch bank) , Citigroup and JP Morgan. The facility was raised through a wholly-owned European subsidiary of the group and had originally been launched at EURO 800 million, but was strongly supported by Sappi's relationship banks and subsequently increased to EURO 900 million. Sappi Finance Director, Don Wilson, said today that the facility comprised two tranches. The first tranch is a EURO 562.5 million five-year revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility for general corporate purposes, and the second a EURO 337.5 million term loan, which will be used to refinance existing high cost debt in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Both tranches carry interest rates at Libor plus a margin of 0.55%, the first tranch carries a floating utilization fee of up to 0.15% depending on usage. Mr. Wilson said that Sappi had some expensive debentures in its North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. subsidiary and had the opportunity to call these debentures in December this year, which the group plans to do. This new facility will significantly reduce Sappi's borrowing cost in the USA and should have a pre-tax cost reduction of approximately $13 million in a full year. The cash cost of calling the debentures will be approximately $6 million as a one off premium. Mr. Wilson said that the rate was very competitive and a reflection of Sappi's credit standing in the international banking market. The facility could be drawn down in any currency of the Group's choice, and, therefore, there will be great funding flexibility for its future needs. Mr. Wilson said the 0.25% commitment fee payable on the unutilized portion of the facility was a reasonable price to pay for access to low cost funds in the future to meet whatever needs the Group might have. He also added that there were no immediate prospects for utilizing the EURO 562.5 million tranch. Sappi Limited is the largest producer of coated free sheet paper in the world and produces fine papers in South Africa, the United Kingdom, Austria, Belgium, The Netherlands, Germany and in the United States. Sappi's net operating assets Operating Assets Another term for working capital. of approximately R29 billion are located mainly in Europe (41%), North America (27%) and Southern Africa (29%). Sappi ordinary shares trade on the Johannesburg Stock Exchange Johannesburg Stock Exchange (JSE) Established in 1886, the Johannesburg Stock Exchange is the only stock exchange in South Africa. Gold and mining stocks form the majority of shares listed. and may be accessed on Bloomberg under the symbol SAP SJ, and on the Reuters Equities 2000 Service under SAPJ.J. In the US its ADRs trade on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors SPP (each ADR ADR - Astra Digital Radio is equal to one ordinary share). Sappi shares are also traded in London and Frankfurt.
NOTE TO EDITORS
Final Syndication Result
Date: 12th July 2001
Mandated Lead Arrangers
1 ABN AMRO Bank 54,625,000
2 Citibank 54,625,000
3 JP Morgan 54,625,000
Arrangers
4 Bank Austria Creditanstalt 44,625,000
5 Bayerische Landesbank Girozentrale 44,625,000
6 BHF Bank AG 44,625,000
7 BNP Paribas 44,625,000
8 Commerzbank 44,625,000
9 Credit Agricole Indosuez 44,625,000
10 Erste Bank 44,625,000
11 KBC Bank NV 44,625,000
12 National Westminster Bank 44,625,000
13 RZB Austria 44,625,000
14 Sumitomo Mitsui 44,625,000
15 Wachovia Bank 44,625,000
16 West LB 44,625,000
Co-Arrangers, Managers
17 Banco Santander Central Hispano Benelux SA 10,000,000
18 Barclays Bank 33,000,000
19 Dai-Ichi Kangyo / Mizuho Financial Group 20,000,000
20 DG Bank 33,000,000
21 Natexis Banques Populaires 20,000,000
22 Societe Generale 20,000,000
23 Standard Chartered Bank 20,000,000
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