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Management Side
Cascades Tenderco Inc.
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Kingsey Falls, Quebec, Canada 09 December 2009 /PRNewswire-FirstCall/ - Cascades Inc. (CAS on the Toronto Stock Exchange), a leader in recovery and in green packaging and tissue paper products, announced today that its wholly owned subsidiary, Cascades Tenderco Inc., has further upsized, and amended certain pricing and other terms of, its previously announced tender offer for Cascades' 7 1/4% senior notes due 2013 and 6 3/4% senior notes due 2013 (together, the notes).

Under the terms of the upsized offer, Cascades Tenderco is offering to purchase for cash any and all of the 7 1/4% notes and the 6 3/4% notes pursuant to Cascades Tenderco's offer to purchase dated 18 November 2009 (the tender offer).

In addition, the terms of the previously announced tender offer have been amended in the following respects:

  • Regardless of whether any notes were tendered before or after 5:00 p.m., Eastern Time, on 02 December 2009 (the early tender date), Cascades Tenderco will now pay in cash the total consideration for all notes validly tendered and accepted for purchase, which for purposes of the 7 1/4% notes will equal USD 1020.00 for each USD 1000 principal amount of such 7 1/4% notes and for purposes of the 6 3/4% notes will equal USD 1011.25 for each USD 1000 principal amount of such 6 3/4% notes.
  • The expiration date has been extended from 9:00 a.m., Eastern Time, on 17 December 2009, to 9:00 a.m., Eastern Time, on 23 December 2009.
  • The financing condition to the tender offer has been satisfied.
  • Acceptance of the 6 3/4% notes is not subject to proration.
  • On 17 December 2009, Cascades Tenderco expects to accept for purchase all notes validly tendered on or before the original expiration date of 9:00 a.m., Eastern Time, on 17 December 2009. On 23 December 2009, Cascades Tenderco expects to accept for purchase all Notes validly tendered after the original expiration date of 9:00 a.m., Eastern Time, on 17 December 2009, and before the expiration date, as extended, as described above.

Pursuant to the terms of the tender offer, on 03 December 2009, Cascades Tenderco purchased all of the 7 1/4% notes which were tendered on or before the early tender date. In addition, on 17 December 2009, Cascades Tenderco expects to purchase all of the 6 3/4% notes tendered on or before the early tender date (and any notes tendered after the early tender date and on or before 9:00 a.m., Eastern Time, on 17 December 2009). Based on the foregoing, approximately USD 151.3 million of 7 1/4% notes and approximately USD 62.2 million of 6 3/4% notes are still outstanding and may be validly tendered and accepted for purchase until 9:00 a.m., Eastern Time, on 23 December 2009.

All remaining terms of the tender offer previously announced are unchanged. In particular, the withdrawal deadline is unchanged and therefore notes tendered may not be withdrawn. In addition, the tender offer remains subject to the waiver or satisfaction of a number of conditions.

None of Cascades Tenderco, Cascades or its board of directors, the dealer managers, or the depositary and the information agent makes any recommendation in connection with the tender offer. Holders must make their own decisions as to whether to tender their Notes, and, if so, the principal amount of notes to tender.

Cascades has retained Banc of America Securities LLC and Wells Fargo Securities, LLC to serve as joint lead dealer managers for the tender offer and Goldman, Sachs & Co. and Scotia Capital (USA) Inc. to serve as co-dealer managers. Cascades has retained Global Bondholder Services Corporation to serve as the depositary and information agent.

For additional information regarding the terms of the Tender Offer, please contact Banc of America Securities LLC at (888) 292-0070 (toll free) or (980) 388-9217 (collect) or Wells Fargo Securities, LLC at (866) 309-6316 (toll free) or (704) 715-8341 (collect). Requests for documents and questions regarding the tender of the notes may be directed to Global Bondholder Services Corporation at (866) 470-3800 (toll free) or (212) 430-3774 (banks and brokers).

Founded in 1964, Cascades produces, converts and markets packaging and tissue products composed mainly of recycled fibres. Cascades employs close to 13,000 employees who work in more than 100 modern and flexible production units located in North America and Europe. Cascades' management philosophy, its 45 years of experience in recycling, and its continued efforts in research and development are strengths that enable the company to create new products for its customers. Cascades' shares trade on the Toronto stock exchange under the ticker symbol CAS.

 

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