Published on 6/5/2014 in the Prospect News Canadian Bonds Daily and Prospect News High Yield Daily.
New Issue: Cascades prices upsized $550 million, C$250 million tranches of 5½% notes at par
By Paul A. Harris
Portland, Ore., June 5 – Cascades Inc. priced upsized $550 million and C$250 million tranches of 5½% senior notes (Ba3/B) in a quick-to-market Thursday transaction, according to a syndicate source.
The offering included an upsized $550 million tranche of eight-year notes which priced at par to yield 5.498%. The tranche was increased from $500 million. The yield printed at the tight end of the 5½% to 5¾% yield talk.
Wells Fargo Securities LLC was the left bookrunner. BofA Merrill Lynch, CIBC World Markets Corp., RBC Capital Markets LLC and TD Securities (USA) LLC were the joint bookrunners.
Cascades also priced an upsized C$250 million issue of seven-year notes at par to yield 5.499%. The tranche was increased from C$200 million, and the yield also printed at the tight end of the 5½% to 5¾% yield talk.
For the Canadian dollar-denominated tranche, CIBC World Markets Inc. was the left bookrunner. National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., BMO Nesbitt Burns Inc. and Wells Fargo Securities LLC were the joint bookrunners.
The Quebec-based manufacturer of green packaging and tissue paper products plans to use the proceeds to repay its existing senior notes due 2016 and 2017, and for general corporate purposes.
| Issuer: | Cascades Inc.
|
| Securities: | Senior notes
|
| Trade date: | June 5
|
| Settlement date: | June 19
|
| Ratings: | Moody’s: Ba3
|
| Standard & Poor’s: B
|
| Marketing: | Quick to market
|
|
|
| Dollar-denominated notes
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| Amount: | $550 million, increased from $500 million
|
| Maturity: | July 15, 2022
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | BofA Merrill Lynch, CIBC World Markets Corp., RBC Capital Markets LLC, TD Securities (USA) LLC
|
| Joint leads: | National Bank of Canada Financial Inc., Scotia Capital (USA) Inc., BMO Capital Markets Corp., Desjardins Securities Inc., BNP Paribas Securities Corp., Comerica Securities, Inc., Rabo Securities USA, Inc.
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5.498%
|
| Spread: | 316 bps
|
| Call protection: | Three years
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5½% to 5¾%
|
|
|
| Canadian dollar-denominated notes
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| Amount: | C$250 million, increased from C$200 million
|
| Maturity: | July 15, 2021
|
| Left bookrunner: | IBC World Markets Inc.
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| Joint bookrunners: | National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., BMO Nesbitt Burns Inc., Wells Fargo Securities LLC
|
| Joint leads: | Desjardins Securities Inc., RBC Dominion Securities Inc.
|
| Co-managers: | BNP Paribas (Canada) Securities Inc., Merrill Lynch Canada Inc.
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5.499%
|
| Spread: | 357.2 bps
|
| Call protection: | Three years
|
| Distribution: | Rule 144A-eligible private placement
|
| Price talk: | 5½% to 5¾%
|
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