North American Tissue News

Cascades Inc.’s US$500 million notes offering

Cascades Inc. (TSX: CAS) (the “Company”), a leader in eco-friendly recycling, packaging and hygiene solutions, announced that it intends, subject to market and other conditions, to offer US$200 million aggregate principal amount of additional 5.375% Senior Notes due 2028 (the “New Notes”), which will be a part of the same series as the US$300 million aggregate principal amount of 5.375% Senior Notes due 2028 (the “Existing Notes”) issued in November 2019, with terms and conditions identical to the Existing Notes (other than issue date and issue price), in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), and from the prospectus requirements under the relevant Canadian securities legislation. Cascades USA Inc., a U.S. indirect wholly-owned subsidiary of the Company (the “Co-Issuer”), is a co-issuer in respect of the Existing Notes and will be a co-issuer in respect of the New Notes with the Company. The Existing Notes are, and the New Notes will be, guaranteed by each of the Company’s existing and future U.S. and Canadian restricted subsidiaries (other than the Co-Issuer), subject to certain exceptions, on a senior unsecured basis. The Existing Notes are not, and the New Notes will not be, guaranteed by the Company’s subsidiaries organized outside of Canada and the United States or by any of the Company’s joint ventures, entities constituting minority investments, unrestricted subsidiaries, special purpose vehicles or immaterial subsidiaries.

The Company intends to use the net proceeds from the offering of the New Notes, together with borrowings under the Company’s revolving credit facility, to (i) fund the purchase, pursuant to its previously announced tender offer, of any and all of the Company’s outstanding US$200 millionaggregate principal amount of 5.75% Senior Notes due 2023 (the “2023 Notes”) (plus accrued interest) (the “Tender Offer”) and (ii) redeem any of the 2023 Notes not purchased pursuant to the Tender Offer.

Source
Global Legal Chronicle
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