South African firm, Sappi buys back US$206M of 2026 bonds

SOUTH AFRICA – 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.

The company has bought US$206.06 million (€209.6m) 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  US$15.63 million (€15.9m).

“I am very pleased with the result of this bond repurchase,” said Steve Binnie, Sappi CEO. “The transaction fits well with our overall strategy to use our free cash efficiently and reduce gross debt, further strengthening our financial position.”

With over 12,000 employees, Sappi operates manufacturing facilities on three continents, in seven countries (eight operations in Europe, four operations in North America and five operations in South Africa) and customers in over 150 countries worldwide.

The company drives product innovation and the development of new uses for its renewable resource (wood fiber) as well as for the biomass and other residues from its production processes.

One such area is in the field of biomaterials (cellulose composites, nanocellulose and lignins), biochemicals including hemicellulose sugars and bio-energy forest products materials.

Sappi believes these materials will play a key role in its future range of products, both as commercial products and for applications within Sappi.

 Launch of sustainable laser coding in collaboration with Domino

Meanwhile, the SA-based company has collaborated with Domino to determine the ideal laser coding solution for global food brands requiring high-quality codes on barrier paper packaging.

Following extensive suitability testing, Domino’s D-Series CO2 laser coders were used to code a range of six different Sappi products and, in all cases, achieved a clean, crisp code without affecting the barrier properties.

“We are truly excited to be able to offer Sappi’s food packaging customers an effective laser coding solution that makes their recyclable product packaging a truly sustainable alternative to plastic composite materials,” says Dr. Stefan Stadler, Team Lead at the Domino Laser Academy.

“The market for sustainable product packaging is growing, and demand for alternatives to hard-to-recycle flexible plastics, such as Sappi’s barrier papers, are only set to increase.

“We were delighted to work with Sappi to explore these new materials to help find the right coding solution for their customer’s individual requirements.”

Sappi has developed a range of barrier papers to replace conventional, unrecyclable multi-material plastic composites.

The product range includes water-based barrier coatings for protection against moisture, oxygen, aroma, grease, and mineral oil.

The project with Sappi is another excellent example of how Domino is working to support manufacturers on their sustainability journey.

It follows an equally exciting recent development in laser coding: the Futamura and NatureFlex compostable film project.

As a coding and marking provider, Domino is always looking to collaborate with innovative packaging providers to identify solutions for new sustainable packaging types.

“We want to remain at the forefront of developments in new and emerging packaging materials to ensure that we can continue to meet the needs of our customers in all industries,” concludes Dr. Stefan Stadler.

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