Cascades’ joint venture Greenpac Mill completes bank debt refinancing

By Tali Rackner

Norfolk, Va., May 6 – Cascades Inc. announced that the Greenpac Mill located in Niagara Falls, N.Y., a company created in partnership with the Caisse de depot et de placement du Quebec, Jamestown Container and Containerboard Partners refinanced its bank debt, according to a press release.

The $245 million debt package includes a $195 million term loan and an authorized revolving credit facility of $50 million.

The five-year agreement will allow the mill to reduce its financing costs by roughly 225 basis points.

The refinancing was completed with Wells Fargo, M&T Bank and Bank of America acting as co-lead arrangers and Export Development Canada as member of the banking syndicate.

“Today’s announcement is excellent news, as it will give us increased flexibility to successfully address future market fluctuations, and will improve Greenpac’s financial situation, considering that 65% of the term loan principal is payable at the end of the term only,” chief financial officer Allan Hogg said in the release.

“In addition, the new conditions will remove certain constraints relating to the construction of the mill that had been included in the previous agreement negotiated in 2011.”

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

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