Cascades Inc. announces proposed private offering of US$300 million senior notes due 2026, US$300 million senior notes due 2028 and Cdn$175 million senior notes due 2025
KINGSEY FALLS, QC, Nov. 12, 2019 /CNW Telbec/ - Cascades Inc. (TSX: CAS) (the "Company"), a leader in eco-friendly recycling, packaging and hygiene solutions, announced today that it intends, subject to market and other conditions, to offer US$300 million aggregate principal amount of senior notes due 2026, US$300 million aggregate principal amount of senior notes due 2028 and Cdn$175 million aggregate principal amount of senior notes due 2025 (collectively, the "Notes") 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"), will be a co-issuer in respect of each series of the Notes with the Company. The Notes of each series 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 Notes of each series 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 Notes to (i) redeem all of its outstanding US$400 million aggregate principal amount of 5.50% senior notes due 2022 and Cdn$250 million aggregate principal amount of 5.50% senior notes due 2021 and (ii) repay certain amounts outstanding under its revolving credit facility.
The Notes of each series and related guarantees are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on the exemption from registration set forth in Rule 144A under the Securities Act, and to non-U.S. persons outside the United States in reliance on the exemption from registration set forth in Regulation S under the Securities Act and upon reliance on the accredited investor exemption in Canada. The Notes of each series and the related guarantees have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States or Canada without registration or an applicable exemption from the Securities Act or applicable Canadian securities legislation.
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.
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 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 U.S. Securities and Exchange Commission and Canadian Securities Commissions filings.
Founded in 1964, Cascades Inc. offers sustainable, innovative and value-added solutions for packaging, hygiene and recovery needs. The Company employs 11,700 women and men and operates close to 100 operating units located in Canada, the United States and Europe. With its management philosophy, half a century of experience in recycling, and continuous efforts in research and development as driving forces, Cascades Inc. continues to deliver the innovative products that customers have come to rely on, while contributing to the well-being of people, communities and the planet. Cascades Inc.'s shares trade on the Toronto Stock Exchange under the ticker symbol CAS.
SOURCE Cascades Inc.
Communications and Public Affairs
Vice-President and Chief Financial Officer
Jennifer Aitken, MBA
Director, Investor Relations