EX-10.4 14 a2154073zex-10_4.htm EXHIBIT 10.4

Exhibit 10.4

 

 

January 22, 2004

 

TO:         THE BANK OF NOVA SCOTIA, as Agent
and to each Lender under the Credit Agreement
referred to below:

 

RE:         February 3, 2003 Credit Agreement between Cascades Inc. and the other parties thereto - Interest Expense

 

Dear Sirs:

 

We are writing further to our request for amendment dated December 17, 2003 regarding the definition of Interest Expense.  Firstly, we thank you for your consent to our request.

 

In addition, we would like to confirm our interpretation of the calculation of Interest Expense (under the new definition) for the purposes of the Credit Agreement.  In connection with the closing of our $500,000,000 credit facility and the US $550,000,000 issuance of notes on February 5, 2003, we paid various upfront and other similar non-recurrent issuer fees which have been capitalized.  These fees represented an amount of $24,608,000.

 

We intend to continue to exclude such fees from the calculation of Interest Expense.  In our view, the expressions “financing expenses” or “financing charges” are intended to capture financing costs which, in the strict sense, are not interest but are incurred on an ongoing basis.  However, these expressions are not meant in our view to include the non-recurrent upfront or issuer fees referred to above.

 

Consequently, could you kindly confirm that you agree with our interpretation that non-recurrent upfront or issuer fees do not constitute Interest Expense for the purposes of the Credit Agreement.

 

Please indicate your agreement by signing a copy of this letter and returning same to the Agent by 5:00 p.m., Friday, February 6, 2004. Please send your response to the attention of Kim Snyder by fax at (416) 866-3329.

 

Yours very truly,

 

 

 

Cascades Inc.

 

Cascades SPG Holding Inc.

 

Cascades G.P.S. S.A.

 

Cascades Arnsberg GmbH

 

 

 

Per:

(s) André Belzile

 

 

André Belzile

 

 


 

WE CONFIRM OUR AGREEMENT WITH THE INTERPRETATION OF INTEREST EXPENSE SET FORTH IN CASCADES INC.’S JANUARY 22, 2004 LETTER:

 

THE BANK OF NOVA SCOTIA, as
Lender

 

NATIONAL BANK OF CANADA,
as Lender

 

 

 

 

 

 

Per:

  (s) David Angel

 

 

Per:

(s) Jeffrey Forgach

 

 

 

 

Assistant Vice President

Per:

  (s) John Santillo

 

 

Per:

(s)  Vincent Lima

 

 

 

 

 

 

Vice President

 

 

 

 

 

 

 

 

CANADIAN IMPERIAL BANK OF
COMMERCE, as Lender

 

CIBC INC., as designated Lender

 

 

 

 

 

 

 

 

 

Per:

  (s) Mark Chandler, Executive Director

 

 

Per:

 

 

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 J. Brill

 

 

 

 

 

 

Managing Director

 

 

 

 

 

BNP PARIBAS (CANADA), as
Lender

 

BNP PARIBAS, as designated Lender

 

 

 

 

 

Per:

 

 

 

Per:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMERICA BANK, as Lender

 

SOCIÉTÉ GÉNÉRALE (CANADA),
as Lender

 

 

 

 

 

Per:

  (s)  Monica Lewis

 

 

Per:

 

 

 

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SOCIÉTÉ GÉNÉRALE, as
designated Lender

 

BANK OF MONTREAL, as Lender

 

 

 

 

 

 

 

 

 

Per:

 

 

 

Per:

(s)  Bruno Jarry

 

 

 

 

 

 

Director

 

 

 

 

 

CAISSE CENTRALE
DESJARDINS, as Lender

 

THE TORONTO-DOMINION
BANK, as Lender

 

 

 

 

 

Per:

(s)  Pierre Tremblay

 

 

Per:

(s) Yves Bergeron

 

Per:

(s)  Francine Champoux

 

 

Per:

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Per:

(s)  Jill Hall

 

 

 

 

 

Per:

Vice President

 

 

 

 

 

 

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