Cascades Inc. to Redeem its 7.25 Percent Convertible Unsecured Subordinated Debentures.KINGSEY FALLS, Quebec--(BUSINESS WIRE)--Aug. 4, 1997-- CASCADES (ME;TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CAS) Cascades Inc. announces that it gave notice to the holders of its $27,557,000 aggregate principal amount of 7.25 percent Convertible Unsecured Subordinated Debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before (the "Debentures") that it will redeem the Debentures on September 30, 1997 for a redemption price Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. for each $1,000 principal amount thereof, equal to the weighted average price at which Common Shares have traded on The Montreal Exchange Montreal Exchange A Canadian derivatives exchange that facilitates the trading of stock options, interest rate futures and options, as well as index options and futures. Located in Montreal, Quebec, it is the country's main financial derivative market, while the Winnipeg during the 20 consecutive trading days In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. ending 5 trading days preceding the date on which the notice of redemption is given, being in this case $9.28 per share, multiplied by a factor of 161.538, together with accrued but unpaid interest to but excluding the date fixed for redemption. The right to convert the Debentures into common shares expired with the notice of redemption given today. The redemption will result in a savings of close to $2,000,000 in interest per year and will allow the Company to avoid an additional dilution of 4,239,554 common shares. The redemption should also contribute to reducing the high number of common shares of the Company sold short since the issuance of the Debentures. In commenting on the redemption Mr. Laurent Lemaire, President and Chief Executive Officer of the Cascades Inc. stated: "The redemption price, which corresponds to $9.74 per share, is clearly below the real value of the Company's common shares and the $41,309,945 consideration constitutes an excellent opportunity to increase value for our shareholders." With annual sales of $2.1 billion and employing more than 8,000 people, Cascades Inc. is one of the world's most important industrial groups specializing in the production and conversion of packaging products, tissue papers and fine papers. Its modern and flexible mills are well positioned in complementary niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. allowing the company to produce and convert more than 400 value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. products made mainly from recycled fibers. CONTACT: Cascades Inc. Mr. Andre Belzile, 819/363-5140 abelzile@cascades.com or Cascades Inc. Mr. Stephane Milot, 514/282-2681 smilot@cascades.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion