2012 Integrated report - Sappi

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