Cascades starts Dutch auction offer for $200 million from two series

Chicago, Oct. 27 – Cascades Inc. started a modified Dutch auction tender offer for up to $200 million from two series of notes, according to a company release.

For the first series, the company is offering to purchase up to $125 million of the $600 million outstanding 5 3/8% senior notes due 2028 (Cusips: 14739LAB8, C21754AB9, C21754AC7). The acceptable bid range will be $1,045 to $1,057.50 per $1,000 note.

For the second series, Cascades will buy up to $75 million of the $350 million outstanding 5 1/8% senior notes due 2026 (Cusips: 14739LAA0, C21754AA1). Noteholders can bid between $1,055 to $1,062.50 for each $1,000 note.

The sublimit on the first series may be increased if the second series is not fully subscribed, by the difference between the cap and the actual amount of tenders for the 2026 notes.

The bid ranges represent total considerations, which include a $30 early tender premium that will only be paid to noteholders who participate in the offer before the early participation deadline.

Tendering noteholders must submit a bid price if they participate in the offer.

The total consideration paid will be the minimum bid price plus a clearing premium, which will be determined by consideration of the bid premiums of all notes of such series validly tendered by the early tender date (and not validly withdrawn), in order of lowest to highest bid premiums.

Tenders may be subject to proration.

The early tender date is 5 p.m. ET on Nov. 9.

Interest will be paid to the applicable settlement date.

The early settlement date is expected to be Nov. 10.

The tender offers will expire at 11:59 p.m. ET on Nov. 24 if the tender offers are not fully subscribed.

Final settlement would be Nov. 26.

Scotia Capital (USA) Inc. is the dealer manager (212 225-5501).

D.F. King & Co., Inc is the information and tender agent for the offer (866 356-7814, 212 269-5550, cascades@dfking.com).

Cascades makes packaging and tissue products that are composed mainly of recycled fibers. The company is based in Kingsey Falls, Quebec.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.