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Cascades closes public equity offering for $125M for Bear Island project

Cascades has announced the closing of its previously announced bought deal public equity offering, which will finance a portion of the Bear Island mill conversion project.

The offering of 7,441,000 common shares of the corporation closed at price of $16.80 per common share for aggregate gross proceeds of $125,008,800.

The offering was completed on a bought deal basis and was underwritten by a syndicate of underwriters co-led by CIBC World Markets Inc., RBC Dominion Securities Inc. and BMO Nesbitt Burns Inc., and including National Bank Financial Inc., Scotia Capital Inc., Desjardins Securities Inc. and TD Securities Inc.

The company plans for the currently idled newsprint machine at the Virginia mill to be converted to a first-quartile containerboard machine capable of producing high-quality, lightweight, 100 per cent recycled linerboard and medium for the North American market.