KINGSEY FALLS, QC, May 11, 2015 /CNW Telbec/ - Cascades Inc. (TSX: CAS) announced today that it intends, subject to market and other conditions, to offer US$250 million aggregate principal amount of senior notes due 2023 (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. The Notes will be guaranteed by the Company's existing and any future U.S. and Canadian restricted subsidiaries, subject to certain exceptions, on a senior unsecured basis. The Notes will not be guaranteed by the Company's subsidiaries outside Canada and the United States or by any of the Company's joint ventures, entities constituting minority investments and immaterial or unrestricted subsidiaries.
The Company intends to use the net proceeds from the offering of the Notes, together with borrowings under its revolving credit facility, if necessary, to fund the purchase, pursuant to its previously announced tender offer, of any and all of its outstanding US$250 aggregate principal amount of 7 7/8% Senior Notes due 2020 (the "2020 Notes"). The Company intends to use any remaining proceeds, together with borrowings under its revolving credit facility, to redeem all 2020 Notes that remain outstanding following the consummation of the tender offer.
The Notes and related guarantees are being offered only to qualified institutional buyers in reliance on the exemption from registration set forth in Rule 144A under the Securities Act, and outside the United States to non-U.S. persons 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 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 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 Securities and Exchange Commission and Canadian Securities Commissions filings.
Founded in 1964, Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres. Cascades employs approximately 10,700 men and women, who work in more than 90 production units in North America and Europe. With its management philosophy, half a century of experience in recycling and continuous efforts in research and development as driving forces, Cascades continues to deliver the innovative products that customers have come to rely on. Cascades' shares trade on the Toronto Stock Exchange under the ticker symbol CAS.
Website: www.cascades.com
Green by Nature Blog: http://blog.cascades.com
Facebook: facebook.com/Cascades
Twitter: twitter.com/@CascadesDD | twitter.com/@CascadesSD | twitter.com/@CascadesInvest
YouTube: youtube.com/Cascades
SOURCE Cascades Inc.
Media: Hugo D'Amours, Vice-President, Communications and Public AffairsCascades Inc., 819 363-5164, [email protected]; Source: Allan Hogg, Vice-President and Chief Financial Officer, Cascades Inc., 819 363-5100
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