Cascades To Proceed (CONT’D FROM PAGE 18)
version, Cascades also announced that it entered into an agreement with CIBC Capital Markets, RBC Capital Mar- kets and BMO Capital Markets on behalf of a syndicate of underwriters, and the underwriters will purchase 7,441,000 common shares at a price of $16.80 per share, for gross proceeds of approximately $125 million.
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The total cost of the Bear Island mill project will be $380 million, which includes the initial $35 million acqui- sition cost paid to White Birch Papers in 2018. Following completion of the offering, the equity requirements of the Bear Island mill project will be fully financed. The plant will have an annual production capacity of 465,000 tons and is scheduled to start up in the fourth quarter of 2022. It will operate at approximately 80 percent of capacity by the end of 2023, reaching 100% by the end of 2025. “This investment, one of the largest in our company’s history, is a decisive and very important strategic move in the modernization of our packaging assets,” said Mario Plourde, President and CEO of Cascades. “By adding the Bear Island mill to our platform, more than 60 percent of our containerboard manufacturing capacity will be in the top quartile of the industry. In addition to offering a devel- opment platform, this mill will strengthen our geographic positioning and presence in the U.S. and will enhance the competitiveness of our asset base and our product offering regardless of economic conditions.” He continued, “From an operational standpoint, Bear Island will optimize the flexibility of our manufacturing platform by providing a product offering that will be com- plementary to its sister plant Greenpac, located in Niag- ara Falls, NY. Bear Island will also offer 100 percent recy- cled products with light basis weights. Greatly valued by our current and future customers, these eco-responsible products are particularly well suited for e-commerce.” “The significant expertise that was developed with- in Cascades from the Greenpac build, and the ongoing success of this mill give us full confidence that we will increase our market share and expand our geographic footprint in the United States,” said Charles Malo, Presi- dent and COO of Cascades Containerboard Packaging. “Bear Island will be equipped with the latest technology and will be able to offer one of the lightest 100 percent recycled containerboard products on the market.”
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October 12, 2020
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