KINGSEY FALLS, QC , Nov. 13, 2019 - Cascades Inc. (TSX: CAS) (the "Company"), a leader in eco-friendly recycling, packaging and hygiene solutions, announced today that it has upsized and priced its private placement of US$350 million aggregate principal amount of 5.125% senior notes due 2026 (the " US$ 2026 Notes"), US$300 million aggregate principal amount of 5.375% senior notes due 2028 (the " US$ 2028 Notes") and Cdn$175 million aggregate principal amount of 5.125% senior notes due 2025 (the "Cdn$ Notes," and together with the US$ 2026 Notes and the US$ 2028 Notes, the "Notes"). Cascades USA Inc., a U.S. indirect wholly-owned subsidiary of the Company, will be a co-issuer in respect of each series of the Notes with the Company. The US$ 2026 Notes will be issued at a price of 100% of their principal amount, the US$ 2028 Notes will be issued at a price of 100% of their principal amount, and the Cdn$ Notes will be issued at a price of 100% of their principal amount. The closing of the offering of the Notes is expected to occur on November 26, 2019 , subject to customary closing conditions.
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, including the related guarantees that will be issued by certain of the Company's subsidiaries, 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 of 1933, as amended (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.