Cascades announces Bear Island project and concurrently announces C$125M bought deal public equity offering
October 22, 2020
125.00 Million CAD
On October 5, 2020, Cascades Inc. (Cascades) announced plans to proceed with the strategic Bear Island mill conversion project located in Virginia and concurrently announced its C$125 million bought deal public equity offering. Subject to obtaining final permits, the currently idled newsprint machine will be converted to a 1st quartile containerboard machine capable of producing high-quality, lightweight, 100% recycled linerboard and medium for the North American market.
To finance the equity portion of the Bear Island mill conversion, Cascades completed the sale of 7,441,000 common shares at a price of C$16.80 per common shares for gross proceeds of approximately C$125 million pursuant to an underwriting agreement entered into between Cascades and CIBC Capital Markets, RBC Capital Markets and BMO Capital Markets, as co-lead underwriters, and National Bank Financial Inc., Scotia Capital Inc., Desjardins Securities Inc. and TD Securities Inc.
Cascades Inc. is a leader in eco-friendly recycling, hygiene and packaging solutions based in Quebec.
McCarthy Tétrault LLP advised CIBC World Markets, and the syndicate of underwriters, with a team led by Patrick Boucher that included Richard O'Doherty, Charles-Antoine Souliere, Vincent Laurin, Isabelle Nazon and Alexandre Saulnier-Marceau (Business).