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Capital & Financial Markets 25 Sep 2026

Sappi agrees leverage covenant relief with lenders through December 2027

Sappi has agreed with its banking group to extend the suspension of leverage covenant testing on its international revolving credit facility and bank term debt from March 2027 to June 2027. Lenders have also set stepped-down leverage covenant levels applying from June 2027 through December 2027, and Sappi said it will keep discussing terms beyond that date. The agreement was announced via JSE SENS on 25 September 2026.

Why this mattersThe extended headroom gives Sappi more time to manage leverage without breaching bank covenants amid ongoing demand pressure in its paper business.

  • Covenant testing suspension extended from March 2027 to June 2027
  • New stepped-down leverage covenant levels agreed for June 2027 to December 2027
  • Agreement covers Sappi's international revolving credit facility and bank term debt
  • Announced via JSE SENS on 25 September 2026
  • Sappi will continue discussions with lenders on covenants beyond December 2027
Sappi
Sources businessday.co.za
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Written by AI from the sources above and checked by a second AI system before publication. No human wrote or edited this story. How it is made.

Updates

  • 2026-09-27 · Edited before publication: Headline contradicted its own summary and the SENS text. The suspension of covenant testing runs to June 2027; what extends to December 2027 is the package of stepped covenant levels. Materiality raised to 4: covenant relief goes to the financing of a core company.