Canadian tissue paper products producer Cascades Inc has entered into an agreement with its banking syndicate to extend and amend certain conditions of its existing $750 million revolving credit facility.

“The banking syndicate is led by National Bank of Canada and Scotiabank as co-lead arrangers and joint book runners,” a press release from Cascades said.

According to Cascades, the amendment provides that the term of the facility will be extended to July 2019 and that the applicable pricing grid will be slightly lowered to better reflect market conditions.

“The other existing financial conditions will remain essentially unchanged,” it added.

CFO Allan Hogg said, “The combined impact of this amendment and the refinancing of our senior notes in 2014 and earlier this year will be to reduce total annual borrowing costs by more than $20 million per year.”

“It will also help extend debt maturities to 2019, while providing us with bank financing availability of approximately $375 million, which is sufficient to allow us to pursue our growth objectives," he added.

Founded in 1964, Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres.

The Company employs close to 11,000 employees, who work in over 90 production units located in North America and Europe. (AR)