Packaging products and services provider Cascades has increased its authorized credit facility to approximately C$1bn to incorporate the addition of a $175m seven-year term loan.
The term loan provides the Company with increased financial flexibility and will reduce financing costs. The agreement is supported by the Company’s existing banking syndicate and the term loan is underwritten by CoBank, ACB and American AgCredit, PCA.
The term loan, which can be repaid at any time, will be used to repay certain of the Company’s outstanding borrowings under its existing credit facility. The financial conditions and covenants of the Company’s existing credit facility are unchanged, and no additional assets were required as security.
Cascades vice-president and chief financial officer Allan Hogg said: “This agreement increases our financial flexibility, reduces our interest costs and supports our efforts to continue reinforcing our financial profile. Moreover, the seven-year term provides us with funding security over a longer timeframe, without requiring modification to the terms and covenants of our existing agreement.”
Founded in 1964, Cascades produces converts and markets packaging and tissue products composed mainly of recycled fibres. The Company employs 11,000 women and men, who work in close to 90 production units in North America and Europe.
With its management philosophy, half a century of experience in recycling, and continuous efforts in research and development as driving forces, Cascades continues to deliver the innovative products that customers have come to rely on. Cascades’ shares trade on the Toronto Stock Exchange under the ticker symbol CAS.
Source: Company Press Release.