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Last updated on April 24, 2014 at 0:15 EDT

Cascades extends and amends its revolving credit facility

September 4, 2012

KINGSEY FALLS, QC, Sept. 4, 2012 /PRNewswire/ – Cascades Inc. (TSX:
CAS), a leader in the recovery and manufacturing of green packaging and
tissue paper products, announces that it has entered into an agreement
with its banking syndicate to extend and amend certain conditions of
its existing $750 million revolving credit facility.

The amendment provides that the term of the facility will be extended by
one year to February 2016 and that the applicable pricing grid will be
adjusted to better reflect market conditions. As a result, outstanding
borrowing costs will be reduced by 37.5 basis points at the
Corporation’s current credit rating. The other existing financial
conditions will remain unchanged.

According to Mr. Allan Hogg, Vice-President and Chief Financial Officer:
“We are pleased with the continued commitment from our banking
syndicate which unanimously supported the proposed amendment. This vote
of confidence represents one more step in our ongoing efforts to
improve our financial performance and flexibility. Not only will we
benefit from a lower cost of borrowing, with cash availability standing
at approximately $300 million as well as no significant debt maturity
until 2016, I am confident that we have the resources necessary to
continue executing our strategic plan.”

Founded in 1964, Cascades produces, converts and markets packaging and
tissue products that are composed mainly of recycled fibres. The
Corporation employs more than 12,000 employees, who work in more than
100 units located 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 serve its clients with innovative products. Cascades’
shares trade on the Toronto Stock Exchange, under the ticker symbol
CAS.

Certain statements in this release, including statements regarding
future results and performance, are forward-looking statements (as such
term is defined under 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 Corporation’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 Corporation’s Securities and Exchange Commission
filings.

SOURCE CASCADES INC.


Source: PR Newswire