2012 Integrated report - Sappi

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Notes to the group annual financial statements for the year ended September 2012 20. Interest-bearing borrowings continued Set out below are details of the more significant non-current interest-bearing borrowings in the group at September 2012: Currency Interest rate (1) Principal amount outstanding Balance sheet value Security/ cession Expiry Financial covenants Redeemable bonds Public bond EUR Fixed €31 million (2) €33 million (3)(4) Property, plant and equipment, inter-company receivables and shares in subsidiaries Public bond US$ Fixed (5) US$400 million US$390 million (3)(4) Property, plant and equipment, inter-company receivables and shares in subsidiaries Public bond EUR Fixed €250 million €245 million (3)(4) Property, plant and equipment, inter-company receivables and shares in subsidiaries Public bond US$ Fixed (5) US$300 million US$293 million (3)(4) Property, plant and equipment, inter-company receivables and shares in subsidiaries Public bond US$ Variable (6) US$350 million US$365 million (3)(4) Property, plant and equipment, inter-company receivables and shares in subsidiaries August 2014 July 2017 April 2018 June 2019 April 2021 No financial covenants No financial covenants No financial covenants No financial covenants No financial covenants Public bond US$ Fixed US$221 million US$216 million (4)(7)(8) Unsecured June 2032 No financial covenants Public bond ZAR Fixed ZAR1,000 million ZAR1,000 million Unsecured June 2013 No financial covenants Public bond ZAR Fixed (9) ZAR750 million ZAR748 million Unsecured April 2015 No financial covenants Public bond ZAR Fixed ZAR500 million ZAR499 million (4) Unsecured June 2016 No financial covenants Private placement bond Private placement bond Private placement bond Private placement bond ZAR Fixed ZAR166 million ZAR166 million Unsecured November 2012 No financial covenants ZAR Fixed ZAR164 million ZAR164 million Unsecured January 2013 No financial covenants ZAR Fixed ZAR41 million ZAR41 million Unsecured March 2013 No financial covenants ZAR Fixed ZAR75 million ZAR75 million Unsecured December 2013 No financial covenants 136
20. Interest-bearing borrowings continued Currency Interest rate (1) Principal amount outstanding Balance sheet value Security/ cession Expiry Financial covenants Secured loans UniCredit Bank UniCredit Bank EUR Variable €187 million €185 million (4) Trade receivables August 2014 EBITDA to net interest, net debt to EBITDA and net debt to total capitalisation (10) US$ Variable US$139 million US$138 million (4) Trade receivables August 2014 EBITDA to net interest, net debt to EBITDA and net debt to total capitalisation (10) Capitalised leases Fortum EUR Variable €6 million €6 million Plant and equipment November 2012 No financial covenants Rand Merchant Bank ZAR Fixed ZAR110 million ZAR110 million Buildings September 2015 No financial covenants Unsecured bank term loans Österreichische Kontrollbank EUR Variable €58 million €58 million December 2012 No financial covenants Nedbank ZAR Fixed ZAR177 million ZAR177 million March 2014 Gearing ratio/ interest and dividend cover (11) Peritum Trading ZAR Fixed ZAR16 million ZAR16 million June 2014 No financial covenants Österreichische Kontrollbank EUR Variable €136 million €134 million (4) June 2017 EBITDA to net interest, net debt to EBITDA and net debt to total capitalisation (10) The analysis of the currency per debt is: Local currency million US$ million US Dollar (12) 1,404 1,404 Euro 665 856 ZAR 2,998 359 (1) The nature of the rates for the group bonds is explained in note 29.2 to the group annual financial statements. The nature of the interest rates is determined with reference to the underlying economic hedging instrument. (2) An amount of €319 million was early redeemed in 2012. (3) Under the relevant indenture, certain limitations exist including, on dividend distributions and other payments, indebtedness, asset sales, liens, guarantees and mergers and consolidations. In case of a change of control, holders have a right to require the relevant issuer to repurchase all or any part of their bonds at a purchase price of 101% of the principal amount of bonds. (4) The principal value of the loans/bonds corresponds to the amount of the facility, however, the outstanding amount has been adjusted by the discounts paid upfront and the fair value adjustments relating to hedge accounting. (5) US Dollar fixed interest rates have been swapped into Euro fixed interest rates. These swaps are subject to hedge accounting. (6) US Dollar fixed interest rates have been swapped into variable US Dollar interest rates. These swaps are subject to hedge accounting. (7) Under the relevant indenture, limitations exist on liens, sale and leaseback transactions and mergers and consolidations. Sappi Limited must maintain a majority holding in Sappi Papier Holding GmbH Group. (8) Sappi Papier Holding GmbH, Sappi Limited or Sappi International SA may at any time redeem the 2032 public bonds (the ‘Securities’), in whole or in part, at a redemption price equal to the greater of (i) 100% of the principal amount of the Securities to be redeemed and (ii) a make-whole amount based upon the present values of remaining payments at a rate based upon yields of specified US treasury securities plus 30 basis points, together with interest calculated on the principal amount of the securities to be redeemed up to the date of redemption. (9) ZAR variable interest rates have been swapped into fixed ZAR interest rates. These swaps are subject to hedge accounting. (10) Financial covenants relate to the Sappi Limited Group. (11) The financial covenant relates to the financial position of Sappi Southern Africa (Pty) Limited, a wholly-owned subsidiary of Sappi Limited. (12) This amount includes debt of US$700 million that is swapped into Euro. A detailed reconciliation of total interest-bearing borrowings has been performed in note 29.2. 2,619 sappi Integrated Report 2012 137
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Sappi Group (Sappi Limited) INTEGRA
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About this report Introduction Our
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2012 was a year that positioned us
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global Sales by source 2012: US$6,3
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Non-financial highlights Specific p
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performance the region as a whole.
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The restructuring of our paper oper
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Group overview continued Q&A with R
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Focus on product development Produc
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4 electricity steam black liquor pu
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commitment Europe Our European empl
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iodiversity Sustainable fibre suppl
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Exciter value delivery was US$23.9
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market leaders > Print is particula
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Focus on innovation Knowledge, insi
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Pulp Share of sales paper pulp + di
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governance Deenadayalen (Len) Konar
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guidance Executive management Mark
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Review of operations Sappi Fine Pap
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streamlined The closure of the Bibe
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Focus on skills development Sappi c
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accelerate Capacity (’000) Divisi
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progress The year ahead The demand
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US$ million September 2012 Septembe
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Share statistics 2012 2011 2010 200
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Chief financial officer’s report
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positive Section 2 Financial perfor
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improvement Operating profit exclud
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cost reduction Taxation The tax exp
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service Sappi Fine Paper North Amer
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priority Section 4 Cash flow In the
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Defined benefit liabilities US$ mil
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Group debt profile We show the majo
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performance Section 6 Share price p
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Governance and compensation Corpora
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encourage Audit committee The audit
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Group IT steering committee The Gro
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During 2012 a board committee was e
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Governance element Principle Summar
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External assurance providers Report
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Principle Chapter 7 - Internal audi
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Stakeholder engagement report Sappi
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Compensation report The two large s
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Page 91 and 92: Component Purpose Characteristics V
Page 93 and 94: competitive The policy on fatalitie
Page 95 and 96: empower Service contracts Mr Boëtt
Page 97 and 98: The dissolving wood pulp capacity c
Page 99: Focus on local communities Our busi
Page 102 and 103: Directors’ approval The directors
Page 104 and 105: Audit committee report for the year
Page 106 and 107: Directors’ report for the year en
Page 108 and 109: Group income statements for the yea
Page 110 and 111: Group statements of cash flows for
Page 112 and 113: Group income statements in Rands (c
Page 114 and 115: Group statements of cash flows in R
Page 116 and 117: Notes to the group annual financial
Page 186 and 187: Annexure A - Investments at Septemb
Page 188 and 189: Glossary market pulp - pulp produce
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Glossary net operating assets - tot
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Notice to shareholders “Resolved
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Notice to shareholders “Resolved
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Notice to shareholders Annexure to
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Notice to shareholders The MOI prov
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Shareholder’s diary Annual genera
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Notes to proxy The form of proxy mu
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Inspired to co-create We operate wi
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2012 Integrated report - Sappi

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