Cascades tenders, solicits consents for 7¾% notes due 2016, 2017

By Marisa Wong

Madison, Wis., June 5 – Cascades Inc. said it began a cash tender offer for any and all of its outstanding $500 million 7¾% senior notes due 2017 and C$200 million 7¾% senior notes due 2016.

The company is also soliciting consents for proposed amendments to the indentures governing the U.S. dollar notes and Canadian dollar notes.

Holders who tender their notes will be deemed to have consented to the proposed amendments to the applicable indenture.

Tenders may be withdrawn at any time prior to 5 p.m. ET on June 18.

The tender offer will expire at 9 a.m. ET on July 3.

The total consideration is $1,043.10 or C$1,043.10 for each $1,000 or C$1,000 principal amount of notes tendered and accepted for purchase. The total consideration includes a $30.00 or C$30.00 consent payment for each $1,000 or C$1,000 of notes tendered by 5 p.m. ET on June 18, the consent payment deadline.

Holders who tender their notes after the consent payment deadline will receive the tender offer consideration of $1,013.10 or C$1,013.10 per $1,000 or C$1,000 principal amount but not the consent payment.

Holders will also receive accrued interest to, but not including, the applicable payment date.

Cascades expects to accept for purchase and pay for notes tendered by the consent payment deadline on June 19 and notes tendered after the consent deadline and prior to the expiration date on July 3.

The tender offer and consent solicitation are subject to a number of conditions, including Cascades’ completion of one or more financing transactions resulting in total proceeds of at least $650 million. In addition, for each series of notes, holders of a majority in principal amount of that series need to consent to the proposed amendments for the changes to take effect.

Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760) is the dealer manager and solicitation agent for the U.S. dollar tender offer, and CIBC World Markets Inc. (416 594-8515) is the dealer manager and solicitation agent for the Canadian dollar tender offer.

D.F. King & Co., Inc. (800 290-6426 or 212 269-5550 for banks and brokers) is the information agent for all of the notes and the tender agent for the U.S. dollar notes, and CST Trust Co. is the tender agent for the Canadian dollar notes.

Based in Kingsey Falls, Quebec, Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibers.

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