JSE-listed dissolving pulp and paper-based solutions company Sappi says, owing to strong uptake from bondholders, it has accepted for purchase all the 2026 bonds tendered for its offer to buy its outstanding 3.125% senior notes, due in 2026.
Sappi bought €209.6-million of the aggregate principal amount of the 2026 bonds in the tender offer, at a purchase price of 92.41% plus accrued and unpaid interest, yielding a capital gain of €15.9-million.
The settlement date for payment is expected to be on October 17.
“I am very pleased with the result of this bond repurchase. The transaction fits well with our overall strategy to use our free cash efficiently and reduce gross debt, further strengthening our financial position,” says Sappi CEO Steve Binnie.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
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