KINGSEY FALLS, QC, Aug. 17, 2020 /CNW Telbec/ – Cascades Inc. (TSX: CAS) (the “Company”), a leader in eco-friendly recycling, packaging and hygiene solutions, announced today that it has completed its previously announced offering of US$300 million aggregate principal amount of 5.375% Senior Notes due 2028 (the “New Notes”). Cascades USA Inc., a U.S. indirect wholly-owned subsidiary of the Company, is a co-issuer in respect of the New Notes with the Company (collectively, the “Issuers”). The New Notes are part of the same issuance of, and rank equally and form a single series with, the US$300 million aggregate principal amount of the Issuers’ 5.375% Senior Notes due 2028 which were issued in November 2019.
The Company also announced today the results of its previously announced cash tender offer (the “Tender Offer”) for any and all of its outstanding US$200 million aggregate principal amount of 5.750% Senior Notes due 2023 (the “2023 Notes”), which expired as of 5:00 p.m. (New York City time) on August 14, 2020 (the “Expiration Time”). As of the Expiration Time, a total of US$150,362,000 principal amount of the 2023 Notes had been validly tendered in the Tender Offer, which excludes US$4,127,000 aggregate principal amount of 2023 Notes that remain subject to guaranteed delivery procedures. The Company has accepted for purchase all of the 2023 Notes that were tendered and paid the Tender Offer Consideration (as defined below) (plus accrued interest) and settled the Tender Offer (other than with respect to the guaranteed delivery procedures) on August 17, 2020 (the “Settlement Date”)
In accordance with the terms of the Tender Offer, the Company offered to make a cash payment to all holders who validly tendered their 2023 Notes in the Tender Offer of US$1,018 per US$1,000 principal amount of 2023 Notes tendered (the “Tender Offer Consideration”), plus accrued interest thereon to, but not including, the Settlement Date. With respect to 2023 Notes accepted for purchase that were tendered and are subsequently delivered in accordance with the guaranteed delivery procedures such tendering holders will receive payment of the Tender Offer Consideration for such accepted 2023 Notes on August 19, 2020, plus accrued interest thereon to, but not including, the Settlement Date. The Company is funding the payment for tendered and accepted 2023 Notes with a portion of the net proceeds from its previously announced issuance and sale of the New Notes.
The Company expects to issue today a notice of redemption with respect to any remaining 2023 Notes not validly tendered on or before the Expiration Time.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall there be any sales of securities mentioned in this press release in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This press release is not a redemption notice for the 2023 Notes.
Certain statements in this release, including statements regarding future results and performance, are forward-looking statements (as such term is defined under applicable securities law, including the Private Securities Litigation Reform Act of 1995) based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the impact of COVID-19 on the Company’s operations, the effect of general economic conditions, decreases in demand for the Company’s products, increases in raw material costs, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors listed in the Company’s Canadian Securities Commissions filings.