Cascades Inc. produces and markets packaging and tissue products. Exhibit 10.10 contains Note 13 from the company’s 2020 annual report detailing long-term debt. Amounts are in millions of dollars.

Required 

a. Cascades had a $750-million revolving credit facility in place at December 31, 2020. What is a revolving credit facility? 

b. What amount of the revolving credit facility had been used at December 31, 2020? Was the revolving credit facility secured, and, if so, what assets had been pledged as security? 

c. In 2020, Cascades issued unsecured senior notes for U.S. $300 million at 104.25%. Does this mean that the notes were issued at a premium or a discount? Explain what this means in terms of how the company’s interest expense on these notes will compare to the cash payments made to the note holders. 

d. Cascades used part of the proceeds of its 2020 U.S. $300-million note issuance to repay U.S.n$200 million in other notes that had an interest rate of 5.55%. Determine the interest costs that Cascades would save on an annual basis from doing this.

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Note 13 Long-Term Debt (in millions of Canadian dollars) Revolving credit facility, nil as at December 31, 2020 (December 31, 2019 - consists of $108 million and US$11 million) 5.75% Unsecured senior notes of US$200 million repurchased in 2020 5.125% Unsecured senior notes of $175 million 5.125% Unsecured senior notes of US$350 million 5.375% Unsecured senior notes of US$600 million (including net amortized premium of $16 million) (December 31, 2019 - US$300 million) Term loan of US$165 million, interest rate of 2.25% as at December 31, 2020 Lease obligations of subsidiaries Other debts of subsidiaries Note Maturity 13(d) 13(a) 13(c) 13(c) 2025 13(a) (c) 13(e) 13(b) 2023 $ 2023 2026 2028 2020 2025 - 175 445 780 210 167 39 2019 $ 123 260 175 455 390 221 153 39