EX-10.3 13 a2154073zex-10_3.htm EXHIBIT 10.3

Exhibit 10.3

 

 

December 17, 2003

 

TO:

The Bank of Nova Scotia, as Agent and to each
Lender under the Credit Agreement referred to below

 

 

Re:                             Request for amendment - Definition of Interest Expense

 

Dear Sirs:

 

Reference is made to the Credit Agreement dated as of February 3, 2003 among Cascades Inc., Cascades Boxboard Group Inc., Cascades SPG Holding Inc., Cascades Boxboard U.S., Inc., Cascades G.P.S. S.A., Cascades S.A., and Cascades Arnsberg GmbH, as Borrowers, The Bank of Nova Scotia, as Agent and the Lenders from time to time party thereto (as amended by a first amending agreement dated March 31, 2003) (the ”Credit Agreement”).

 

We are requesting an amendment to the definition of Interest Expense in Section 1.1 of the Credit Agreement, so that such definition may be replaced by the following:

 

““Interest Expense” means, for any period, the aggregate amount of interest and other financing expenses during such period in each case determined in accordance with GAAP, but (i) including interest and other financing charges which have been capitalized, and (ii) excluding amortization of financing expenses and deferred gains or losses on the translation of any debt payable in foreign currency.”

 

The effect of this amendment on our Interest Coverage Ratio as of December 31, 2003 is estimated at 0,1x.  We believe that the amended definition will reflect more accurately the objective of the ratio to measure the cash flow capacity to cover the cash interests and is also in line with the definition established for our joint venture Norampac Inc.  For your reference, the amortization of deferred financing costs at present is approximately C$3 million per annum.

 

At our annual review meeting to be held in February or March, we intend to discuss further our projections for 2004 and their impact on our Interest Coverage Ratio.

 

Please indicate your consent of this amendment by signing in the space below, and return to the Agent by 12:00 noon, Thursday, January 15, 2004. Please send your response to the attention of Anuj Dhawan by fax at (416) 866-3329.

 

Upon receipt of the consent of the Majority Lenders, this amendment will be effective from December 31, 2003.

 


 

Yours very truly,

 

CASCADES INC.
CASCADES SPG HOLDING INC.
CASCADES G.P.S. S.A.
CASCADES ARNSBERG GmbH

 

 

 

 

 

Per:

  (s)  André Belzile

 

 

 

(Form of consent on the following pages)

 

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WE AGREE TO THE ABOVE AMENDMENT:

 

 

THE BANK OF NOVA SCOTIA, as
Lender

 

NATIONAL BANK OF CANADA,
as Lender

 

 

 

 

 

 

Per:

  (s) David Angel

 

 

Per:

  (s) Roch Ledoux

 

 

 

Per:

  (s) Réjean Guévremont

 

 

 

 

 

CANADIAN IMPERIAL BANK OF
COMMERCE, as Lender

 

CIBC INC., as designated Lender

 

 

 

 

 

 

Per:

  (s) Mark Chandler, Executive Director

 

 

Per:

  (s) Geraldine Kerr

 

Per:

  (s) Geoff Bond, Managing Director

 

 

 

  Executive Director

 

 

 

 

 

 

 

 

CITIBANK, N.A. Canadian Branch,
as Lender

 

CITICORP NORTH AMERICA,
INC., as designated Lender

 

 

 

 

 

 

Per:

  (s)  Isabelle Côté

 

 

Per:

  (s) Daniel Brill

 

 

 

 

 

 

  Managing Director

 

 

 

 

BNP PARIBAS (CANADA),
as Lender

 

BNP PARIBAS, as designated Lender

 

 

 

 

 

 

Per:

  (s)  Frank L. Shaw

 

 

Per:

  (s) Frank L. Shaw

 

Per:

  (s)  Edouard Sinor

 

 

Per:

  (s) Edouard Sinor

 

 

 

 

COMERICA BANK, as Lender

 

SOCIÉTÉ GÉNÉRALE (CANADA),
as Lender

 

 

 

Per:

  (s)  Monica Lewis

 

 

Per:

  (s) David Daldoni

 

Per:

  (s)  Robert

 

 

Per:

  (s) Cynthia Hansen

 

 

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SOCIÉTÉ GÉNÉRALE, as
designated Lender

 

BANK OF MONTREAL, as Lender

 

 

 

 

 

 

Per:

 

 

 

Per:

  (s) Bruno Jarry

 

 

 

 

 

 

 

CAISSE CENTRALE
DESJARDINS, as Lender

 

THE TORONTO-DOMINION
BANK, as Lender

 

 

 

 

 

 

Per:

  (s) Pierre Tremblay

 

 

Per:

 

 

 

  (s) Francine Champoux

 

 

 

 

 

 

 

 

TORONTO-DOMINION (TEXAS)
INC., as designated Lender

 

 

 

 

 

 

 

 

Per:

 

 

 

 

 

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