Sappi has agreed a 548m (e900m) loan facility with three banks to help reduce borrowing costs in the US.


The loan, which has been underwritten by ABN AMRO, Citigroup and JP Morgan, was originally launched at 487.3m, but was increased due to the banks support of the South African fine paper manufacturer.


Sappi finance director Don Wilson said the credit facility comprised two portions, a 342.6m revolving credit facility and a 205.4m loan.


Wilson said Sappi planned to call in debentures in its North American subsidiary in December this year.


He added that the new facility would reduce Sappis borrowing cost in the US and would lead to a pre-tax saving of about 9.3m a year.