Cascades subsidiary buys additional notes in offer for 7¼%, 6¾% notes

By Angela McDaniels

Tacoma, Wash., Dec. 17 - Cascades Inc. subsidiary Cascades Tenderco Inc. purchased an additional C$31.2 million principal amount of Cascades' 7¼% senior notes due 2013 and has also purchased approximately C$187.9 million of Cascades' 6¾% senior notes due 2013, according to a company news release.

The amount of notes purchased represents the 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 the amount of 6¾% notes tendered in the offer prior to 9 a.m. ET on Dec. 17.

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

Approximately C$120.1 million principal amount of 7¼% notes and C$62.1 million principal amount of 6¾% notes remain outstanding, which may be tendered during the remainder of the tender period.

The offer will expire at 9 a.m. ET on Dec. 23.

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

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

The offer began Nov. 18 and has been 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) are the joint lead dealer managers. Global Bondholder Services Corp. (866 470-3800 or call collect 212 430-3774) is the depositary and information agent.

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

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