Cascades tender for $200 million notes oversubscribed at early date

By Wendy Van Sickle

Columbus, Ohio, Dec. 12 – Cascades Inc. said its cash tender offer for up to a total of $200 million of its $550 million 5½% senior notes due 2022 and its $250 million 5¾% senior notes due 2023 was oversubscribed as of the early deadline.

Specifically, Cascades said holders had tendered $198,289,000 of the 2022 notes and $102,052,000 of the 2023 notes by the early deadline, 5 p.m. ET on Dec. 11.

The company will accept $150 million of the 2022 notes to meet the sublimit for that series, which has first acceptance priority, and $50 million of the 2023 notes to meet the overall tender cap.

No additional notes are being accepted, as the maximum tender amount has been met, the company reported in a Tuesday update.

The total consideration per $1,000 principal amount of notes will be $1,006.25 for the 2022 notes and $1,026.25 for the 2023 notes.

In each case, the total consideration includes a $30 early tender premium.

The company also will pay accrued interest to but excluding the settlement date. Early settlement was expected to occur on Dec. 12.

The tender offer opened on Nov. 28 and will end at 9 a.m. ET on Dec. 27, although notes tendered after the early deadline will be returned.

“The tender offers are another concrete step towards our goal of reinforcing our financial profile,” Mario Plourde, Cascades president and chief executive officer, said in Tuesday’s news release.

“In addition to being immediately accretive through an annual reduction in our interest expense over the life of the retired debt, we have also reduced our exposure to fluctuations in the exchange rate between U.S. and Canadian currencies by decreasing the portion of our long-term debt that is denominated in U.S. dollars.

“Moreover, we are able to complete this transaction while maintaining sufficient liquidity to meet our projected capital requirements going forward.”

Cascades previously said it would fund the offers with cash on hand and, if necessary, credit facility borrowings.

Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760) is the dealer manager. D.F. King & Co., Inc. at (877 536-1561, 212 269-5550 or cascades@dfking.com) is the information agent and tender agent.

Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibers. The company is based in Kingsey Falls, Quebec.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.