Cascades subsidiary buys more notes at end of 7¼%, 6¾% notes offer

By Jennifer Chiou

New York, Dec. 23 - Cascades Inc. subsidiary Cascades Tenderco Inc. purchased an additional C$3.9 million of Cascades' 7¼% senior notes due 2013 and also purchased C$1.3 million more of Cascades' 6¾% senior notes due 2013 at the end of the offer following two previous settlements.

The offer expired at 9 a.m. ET on Dec. 23.

The company previously settled purchases of C$31.2 million of 7¼% notes tendered after the early tender date of 5 p.m. ET on Dec. 2 and prior to 9 a.m. ET on Dec. 17 and C$187.9 million of 6¾% notes tendered in the offer prior to 9 a.m. ET on Dec. 17.

As already reported, the company made prior early purchases of C$494.6 million of 7¼% notes that had been tendered at the early tender date.

The total tender amounts ended up coming in at C$529.7 million of 7¼% notes and C$189.3 million of 6¾% notes.

For each C$1,000 principal amount, holders received C$1,020.00 for the 7¼% notes and C$1,011.25 for the 6¾% notes. The company also paid accrued interest.

The company funded the tender offer with the proceeds of its issue of 7¾% senior notes, which settled on Dec. 3.

The offer began Nov. 18 and was amended several times.

On Nov. 19, the company increased the payment for the 7¼% notes to C$1,020.00 from C$1,017.50 and raised the maximum amount of notes to be purchased to C$650 million from C$400 million.

On Dec. 2, the offer cap was increased to C$700 million.

On Dec. 9, the offer was amended to give the early tender payment of C$30.00 per note to all holders who tender instead of just those who tendered prior to the early tender deadline. The early tender payment is included in the C$1,020 and C$1,011.25 payouts noted above.

Also on Dec. 9, the offer expiration was extended to Dec. 23 from Dec. 17 and the offer cap was removed.

Banc of America Securities LLC (800 828-3182 or call collect 212 357-4692) and Wells Fargo Securities, LLC (866 309-6316 or call collect 704 715-8341) were the joint lead dealer managers. Global Bondholder Services Corp. (866 470-3800 or call collect 212 430-3774) was the depositary and information agent.

The company also said it completed its previously announced offering of $250 million of 7 7/8% senior notes due 2020.

Cascades is a Kingsey Falls, Quebec-based producer, converter and marketer of packaging and tissue products.

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