Paper company Sappi has implemented its three-year €360 million ($517.3 million) trade receivables securitization program for its non-South African businesses.

The program was arranged by UniCredit Bank and funded through its Arabella Finance Limited conduit. The proceeds have been utilized to refinance the group's existing short-term securitization, which was due to mature in December 2011.

After a $680 million multi-currency senior secured notes offering and an extension and increase of its €350 million revolving credit facility earlier in 2011, the group's new securitization program further extends the firm's debt maturity profile.

"We are pleased to have successfully completed this three year securitization programme, effectively terming out our existing short-term program," said Mark Thompson, Sappi's chief financial officer. "The transaction highlights our continued proactive approach to managing our debt capital structure and contributes to the diversity of our funding sources, thereby further enhancing our overall financial flexibility."

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