SAPPI LIMITED

Credit Facility terminate on May 31, 2012 and the annual interest rate on borrowings is calculated based
on Libor or Euribor plus a funding margin varying between 3.0% and 6.5% depending on the credit rating
assigned to the senior secured debt of Sappi Limited, plus certain costs. Borrowings may be made by
certain subsidiaries of Sappi Limited and the Revolving Credit Facility is jointly and severally guaranteed
on a senior basis by Sappi Limited, Sappi Papier Holding GmbH (‘‘SPH’’) and certain other subsidiaries
of Sappi Limited, as well as secured by first-priority security interests over certain assets of Sappi
Limited, SPH and the other subsidiary guarantors. The Revolving Credit Facility contains an interest
coverage covenant and a leverage covenant, in each case measured at the Sappi Limited consolidated
level and set at various levels in line with the long term forecast of Sappi’s results. The Revolving Credit
Facility contains certain customary negative covenants and restrictions, including (among others)
restrictions on dividend distributions, the granting of security, incurrence of indebtedness, the provision
of loans and guarantees, a change of business of the Group, acquisitions or participations in joint
ventures and mergers and disposals. As of September 2010, we were in compliance with these
covenants. For further information, see ‘‘Item 10—Additional Information—Material Contracts’’,
‘‘Item 19—Exhibits’’, and note 20 to our Group Annual Financial Statements included elsewhere in this
Annual Report.
OeKB Term Loan Facility. On August 27, 2009, Sappi refinanced its existing e 500 million term loan
facility with Oesterreichische Kontrollbank Aktiengesellschaft (‘‘OeKB’’) arranged in May 2003 and
previously due in 2010 by entering into a e 400 million term loan facility maturing on April 30, 2014 (the
‘‘OeKB Term Loan Facility’’). The annual interest rate on borrowings is calculated based on the OeKB
financing rate plus a margin varying between 4.00% and 7.50%, depending on the credit rating assigned
to the senior secured debt of Sappi Limited, plus certain costs. The margin at the date of filing this Annual
Report was 5.5% per annum. The OeKB Term Loan Facility is guaranteed by Sappi Limited and the same
subsidiaries that are guarantors (other than SPH) under the Revolving Credit Facility. The obligations
under the OeKB Term Loan Facility are secured by substantially the same collateral that secures the
obligations under the Revolving Credit Facility and the 2014 Bonds. The other material terms of the new
OeKB term loan facility, including the financial covenants, the undertakings and the events of default are
substantially the same as the terms of the Revolving Credit Facility. The e 80 million (US$ 109 million) first
installment of the OeKB facility due in December 2010, was repaid early in June 2010. For further
information, see ‘‘Item 10—Additional Information—Material Contracts’’, ‘‘Item 19—Exhibits’’, and
note 20 to our Group Annual Financial Statements included elsewhere in this Annual Report.
2009 Secured Notes. On July 29, 2009, PE Paper Escrow GmbH (the ‘‘Issuer’’), a special purpose
limited liability company wholly owned by SPH, issued e 350 million 11.75% Senior Secured Notes due
2014 and US$ 300 million 12.00% Senior Secured Notes due 2014 (together, the ‘‘2014 Bonds’’). Interest
on the 2014 Bonds is payable semi-annually, commencing on February 1, 2010, and the 2014 Bonds
mature on August 1, 2014. The 2014 Bonds are jointly and severally guaranteed on a senior basis by
Sappi Limited, SPH and certain other subsidiaries of Sappi Limited, and are secured by substantially the
same collateral that secures the obligations under the Revolving Credit Facility and the OeKB Term Loan
Facility. The Issuer has agreed to observe certain covenants with respect to the 2014 Bonds including
limitations on dividend distributions and other payments, indebtedness, asset sales, liens, guarantees
and on mergers and consolidations. For further information, see ‘‘Item 10—Additional Information—
Material Contracts’’, ‘‘Item 19—Exhibits’’, and note 20 to our Group Annual Financial Statements
included elsewhere in this Annual Report.
Domestic Medium Term Note Program. In June 2009, Sappi Southern Africa (Pty) Ltd (previously
Sappi Manufacturing (Pty) Ltd) combined its ZAR 3 billion (US$ 437 million) Domestic Medium Term
Note Program established in June 2006 (the ‘‘Initial Program’’) with its commercial paper program
established in November 2003 (‘‘Initial CP Program’’), into a new ZAR 5 billion Domestic Medium Term
Note Program (the ‘‘DMTN Program’’) which supersedes and replaces the Initial Program and the Initial
CP Program in their entirety without affecting any notes issued under the Initial Program and Initial CP
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