Commentary & Deal Flow

EM/HY: Sappi Papier Holding GmbH (SAPSJ), a wholly-owned subsidiary of Sappi Ltd, EUR300m 144A/Reg S sustainability-linked sr notes due 03/15/32 (7y). NC3 (MWC B+50bp) (50%,25%,par). Equity claw: 3y 40%. (Expect Ba2)/BB/BB+ (stable/stable/stable), gtd by Sappi Ltd. Via Citi (B&D)/CA/ING/MUFG jt glocos and physical books/Erste/JPM/KBC/RBI/UniCredit jt books. MUFG is SLB structuring coordinator. No reg rights. List Lux. NY law. CoC at 101. IPT: 4.75% area. Price talk: 4.50%-4.625%.

Final terms: EUR300m at 4.50%.

Roadshow 03/03-05 (1x1s available on request) (investor call at 10:30am UKT 03/03). Books closed at 10:30am UKT 03/05. Pricing 03/05 UK afternoon. UOP: Refinance its EUR240.395m 3.125% sr notes due 04/15/26 (callable at 100) and $54m for GCP. Biz: the Sappi Group is a global diversified woodfibre company with operations in North America, Europe and South Africa HQ: Johannesburg, South Africa.

Measurement period: Measurement period of Sustainability Performance Target 1 “SPT 1”: fiscal year ending 30 September 2028; Measurement period of Sustainability Performance Target 2 “SPT 2”: fiscal year ending 30 September 2027.

KPIs: KPI 1: Decrease specific GHG (Scope 1+2) emissions; KPI 2: Sourcing of certified fibre.

Sustainability Performance Targets: SPT 1 (2028): Reduce the ratio of absolute Scope 1 and Scope 2 GHG emissions to metric air dried tons of saleable product (“tCO2e/adt”) of the Group by at least 35.6% for the fiscal year ending September 30, 2028 (compared to a baseline of 0.908 tCO2e/adt for the fiscal year ended September 29, 2019); SPT 2 (2027): Maintain the proportion of certified fibre supplied to our mills to above 75% for the fiscal year ending September 30, 2027 (compared to a baseline of 75% in the fiscal year ended September 29, 2019)

First higher coupon payment date: If SPT 1 not achieved: 15 March 2029; If SPT 2 not achieved: 15 March 2028; SPT Step-up 10 bps p.a. per missed KPI.

Netroadshow: https://www.netroadshow.com/nrs/home/#!/?show=ca590ea4 (entry code: Eucalyptus2025).

Note: although this deal is being marketed to both EM and HY investors, with the ultimate parent based in South Africa this will count as EM for volume purposes.