DBRS Assigns BB (high) Rating to Cascades Inc. New Debt Issuance

DBRS has today assigned a rating of BB (high) with a Negative trend to the proposed private offering of $250 million senior notes (the Notes) by Cascades Inc. (Cascades or the Company). The Notes will mature in 2020 and are expected to be guaranteed by the Company’s existing and future U.S. and Canadian restricted subsidiaries on a senior unsecured basis. The Notes will not be guaranteed by the Company’s subsidiaries outside Canada and the United States or by any of the Company’s joint ventures, minority investments or unrestricted subsidiaries.

Proceeds from the offering of the Notes are expected to be used primarily for debt repayment, including the purchase of Cascades Tenderco Inc., a newly formed wholly owned subsidiary of the Company, pursuant to the previously announced tender offer of the Company’s senior notes maturing in 2013.

DBRS observes that the Company’s operating performance has been improving through 2009 amid still-challenging industry conditions, with debt levels also being reduced. Should the Company be able to continue this improvement over the near term, DBRS may consider positive rating actions.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodologies are Rating the Forest Products Industry and DBRS Rating Methodology for Leveraged Finance, which can be found on our website under Methodologies.

This is a Corporate (Natural Resources) rating.