(All amounts in this press release are in Canadian dollars.)
KINGSEY FALLS, QC, Feb. 10 /CNW Telbec/ - Cascades Inc. (CAS on the Toronto stock exchange), a leader in the recovery of recyclable
materials and the manufacturing of green packaging and tissue paper
products, is pleased to announce that it has reached an agreement with
a syndicate of banks to amend and renew its credit agreement with
improved financing conditions.
Under the amended agreement, Cascades will consolidate the existing
revolving and term credit facilities into a new $750 million revolving
credit facility maturing in February 2015. At Cascades' current senior
secured debt rating, the new credit facility will accrue interest at
market rates plus a margin of 212.5 bps. Standby fees will amount to
22.5% of the applicable margin.
"This new facility reduces our cost of borrowing and improves our
financial flexibility. It demonstrates the strong support that we
continue to obtain from our banking syndicate. While our current
strategic priority remains to reduce debt, the new credit facility
provides us with another tool to continue improving our overall
competiveness and creating value for our shareholders" said Allan Hogg,
Chief Financial Officer.
The existing financial covenants, namely the maximum funded debt to
capitalization ratio of 65% and the minimum interest coverage ratio of
2.25x, stay unchanged.
The new credit agreement is led by National Bank Financial as Co-Lead
Arranger and Administrative agent, Scotia Capital as Co-Lead Arranger,
Collateral and Syndication agent along with Canadian Imperial Bank of
Commerce, Caisse Centrale Desjardins and Wells Fargo acting as
A full description of the terms of the new credit agreement will be
filed on SEDAR (www.sedar.com).
Founded in 1964, Cascades produces, converts and markets packaging and
tissue products that are composed mainly of recycled fibres. The
Company employs close to 12,500 employees, who work in more than 100
units located in North America and Europe. Its management philosophy,
its more than 45 years of experience in recycling and its continued
efforts in research and development are strengths that enable Cascades
to create new products for its customers. Cascades' shares trade on the
Toronto Stock Exchange, under the ticker symbol CAS.
SOURCE CASCADES INC.
For further information:
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Director, Investor relations
Vice-President and Chief Financial Officer