JSE-listed paper and packaging company Sappi has announced an increase to a senior notes offering by its subsidiary Sappi Papier Holding (SPH) to €400-million, from €350-million initially.
The company is implementing this offering to improve its debt maturity profile and to strengthen its liquidity headroom and its balance sheet.
The net proceeds from the offering will be used to redeem all of SPH’s outstanding €350-million senior notes due 2023 and for general corporate purposes.
Sappi CEO Steve Binnie says this refinancing of the 2023 bond with a new seven-year bond meets the group’s objective of extending the debt maturity profile, with no material debt maturities now until 2026.