Consumables

Cascades extends and amends its revolving credit facility

Wednesday 05. September 2012 - Cascades Inc. (TSX: CAS), a leader in the recovery and manufacturing of green packaging and tissue paper products, announces that it has entered into an agreement with its banking syndicate to extend and amend certain conditions of its existing $750 million revolving credit facility.

The amendment provides that the term of the facility will be extended by one year to February 2016 and that the applicable pricing grid will be adjusted to better reflect market conditions. As a result, outstanding borrowing costs will be reduced by 37.5 basis points at the Corporation’s current credit rating. The other existing financial conditions will remain unchanged.
According to Mr. Allan Hogg, Vice-President and Chief Financial Officer: “We are pleased with the continued commitment from our banking syndicate which unanimously supported the proposed amendment. This vote of confidence represents one more step in our ongoing efforts to improve our financial performance and flexibility. Not only will we benefit from a lower cost of borrowing, with cash availability standing at approximately $300 million as well as no significant debt maturity until 2016, I am confident that we have the resources necessary to continue executing our strategic plan.”