Sappi Prices EUR450 Million Senior Secured Notes Offering

Johannesburg (ots/PRNewswire) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS
RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Further to Sappi's announcement on March 10, 2015 in connection
with a bond issue, Sappi Limited announced today that it priced its
bond offering to raise EUR450 million of new senior secured notes due
2022 with a coupon of 3.375% per annum.

The net proceeds of the offering, together with drawings under
credit facilities and cash on hand, will be used to redeem all of
Sappi Papier Holding GmbH's EUR250 million senior secured notes due
2018 and US$300 million senior secured notes due 2019.

Steve Binnie, CEO of Sappi Limited, commented as follows on the
bond offering: "We are delighted with the result of this refinancing
and achieving this next step in our objective of reducing interest
costs and extending our maturity profile. The material
over-subscription indicates strong support from the bond investor
community, resulting in a historically low coupon for Sappi of
3.375%. Furthermore, this refinancing reduces our annual interest
charge by approximately US$25 million."

This press release is for information purposes only and does not
constitute any offer to sell or the solicitation of an offer to buy
any security in the United States or in any other jurisdiction. The
notes have not been and will not be registered under the U.S.
Securities Act of 1933, as amended (the "Securities Act") or
applicable state or foreign securities laws and may not be offered or
sold in the United States absent registration under federal or
applicable state securities laws or an applicable exemption from such
registration requirements. Any public offering of securities to be
made in the United States will be made by means of a prospectus that
may be obtained from the issuer and that will contain detailed
information about the company and management, as well as financial
statements.

This press release shall not be considered an "offer of securities
to the public" for purposes of the Luxembourg law on prospectus for
public offering dated 10 July 2005. Furthermore, this press release
constitutes neither an offer to sell nor a solicitation to buy
securities nor shall it give rise to or require the publication of a
prospectus in any EU member state which has implemented the
Prospectus Directive.

This announcement does not constitute an invitation or offer to
underwrite, subscribe for or otherwise acquire or dispose of any
securities nor is it intended to be an inducement to engage in
investment activity for the purpose of Section 21 of the Financial
Services and Markets Act 2000 of the United Kingdom (the "FSMA").

This announcement is directed only at (i) persons who are outside
the United Kingdom; (ii) persons in the United Kingdom who have
professional experience in matters relating to investments and who
are investment professionals within the meaning of Article 19(5) of
the Financial Services and Markets Act 2000 (Financial Promotion)
Order 2005 (as amended) of the United Kingdom (the "Financial
Promotion Order"); (iii) persons who fall within Articles 49(2)(a) to
(d) ("high net worth companies, unincorporated associations etc.") of
the Financial Promotion Order; and (iv) any other person to whom this
announcement may be lawfully directed (all such persons together
being referred to as "relevant persons"). Any investment or
investment activity to which this announcement relates is only
available to relevant persons and will be engaged in only with
relevant persons. This announcement must not be acted on or relied on
by persons who are not relevant persons.

The offer of the notes does not, nor is it intended to, constitute
an "offer to the public" (as that term is defined in the South
African Companies Act, 2008 (the "SA Companies Act")) and does not,
nor is it intended to, constitute a prospectus prepared and
registered under the SA Companies Act. No South African resident or
offshore subsidiary of a South African resident may subscribe for or
purchase any of the notes or beneficially own or hold any of the
notes unless specific approval has been obtained from the South
African Reserve Bank by such person or such subscription, purchase or
beneficial holding or ownership is otherwise permitted under the
South African exchange control regulations or the rulings promulgated
thereunder.

Forward looking statements

Certain statements in this release that are neither reported
financial results nor other historical information, are
forward-looking statements, including but not limited to statements
that are predictions of or indicate future earnings, savings,
synergies, events, trends, plans or objectives.

The words "believe", "anticipate", "expect", "intend", "estimate",
"plan", "assume", "positioned", "will", "may", "should", "risk" and
other similar expressions, which are predictions of or indicate
future events and future trends and which do not relate to historical
matters, identify forward-looking statements. You should not rely on
forward-looking statements because they involve known and unknown
risks, uncertainties and other factors which are in some cases beyond
our control and may cause our actual results, performance or
achievements to differ materially from anticipated future results,
performance or achievements expressed or implied by such
forward-looking statements (and from past results, performance or
achievements). Certain factors that may cause such differences
include but are not limited to:

- the highly cyclical nature of the pulp and paper industry (and the factors
that contribute to such cyclicality, such as levels of demand, production capacity,
production, input costs including raw material, energy and employee costs, and
pricing);
- the impact on our business of a global economic downturn;
- unanticipated production disruptions (including as a result of planned or
unexpected power outages);
- changes in environmental, tax and other laws and regulations;
- adverse changes in the markets for our products;
- the emergence of new technologies and changes in consumer trends including
increased preferences for digital media;
- consequences of our leverage, including as a result of adverse changes in
credit markets that affect our ability to raise capital when needed;
- adverse changes in the political situation and economy in the countries in
which we operate or the effect of governmental efforts to address present or future
economic or social problems;
- the impact of restructurings, investments, acquisitions, dispositions and
other strategic initiatives (including related financing), any delays, unexpected
costs or other problems experienced in connection with dispositions or with
integrating acquisitions or implementing restructurings or other strategic
initiatives, and achieving expected savings and synergies; and
- currency fluctuations.

We undertake no obligation to publicly update or revise any of
these forward-looking statements, whether to reflect new information
or future events or circumstances or otherwise.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS
RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

André F Oberholzer
Group Head Corporate Affairs
Sappi Limited
Tel +27(0)11-407-8044
Mobile +27(0)83-235-2973
Andre.oberholzer@sappi.com

Graeme Wild
Group Head Investor Relations and Sustainability
Sappi Limited
Tel +27(0)11-407-8391
Mobile +27(0)83-320-8624
Graeme.wild@sappi.com

ots Originaltext: Sappi Limited
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