Cascades repurchases almost all 2013 bonds, eyes lower leverage ratio

By Jennifer Lanning Drey

Portland, Ore., Jan. 22 - Cascades Inc. repurchased nearly all of its remaining 2013 bonds in January, Alain Lemaire, chief executive officer of the company, said Friday at the CIBC World Markets 2010 Whistler Institutional Investor Conference.

In late 2009, the company refinanced the majority of the $961 million of debt it had scheduled to mature in 2013, extending and staggering the maturities into 2016, 2017 and 2020.

Regarding its capital structure, Lemaire said Cascades would like to achieve a leverage ratio around 3.0 times but is comfortable with its current leverage ratio of about 3.5 times.

Lemaire also said the company looks to generate at least $100 million of free cash flow per year to put toward reducing debt or to use for potential strategic acquisitions.

"It's our job to keep a good balance between all of this," he said.

The company's first goal is to reduce debt, and any acquisitions would need to have a quick return and offer good synergies, he noted.

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

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