Cascades Inc. — Capital/Financing Update 2020

Aug 17, 2020

CASCADES INC.

FORM 51-102F3 MATERIAL CHANGE REPORT

Item 1. – Name and Address of Company:

Cascades Inc. (“Cascades” or “Company”) 404, Marie-Victorin St. Kingsey Falls, Quebec, J0A 1B0

Item 2. – Date of Material Change:

August 17, 2020

Item 3. – News Release:

Press release with respect to the material change referred to in this report was issued through newswire services of CNW Telbec on August 17, 2020.

Item 4. – Summary of Material Change:

On August 17, 2020, Cascades announced that it has completed its previously announced private notes offering and announced the results of its previously announced cash tender offer (the “Tender Offer”) for any and all of its outstanding US$200 million aggregate principal amount of 5.750% Senior Notes due 2023 (the “2023 Notes”) as more fully described in Item 5 hereinafter.

Item 5. – Full Description of Material Change:

Notes Offering

Cascades announced that it has completed its previously announced offering of US$300 million aggregate principal amount of 5.375% Senior Notes due 2028 (the “New Notes”). Cascades USA Inc., a U.S. indirect wholly-owned subsidiary of the Company, is a co-issuer in respect of the New Notes with the Company (collectively, the “Issuers”). The New Notes are part of the same issuance of, and rank equally and form a single series with, the US$300 million aggregate principal amount of the Issuers’ 5.375% Senior Notes due 2028 which were issued in November 2019.

Tender Offer

The Company also announced today the results of its previously announced Tender Offer for the 2023 Notes, which expired as of 5:00 p.m. (New York City time) on August 14, 2020 (the “Expiration Time”). As of the Expiration Time, a total of US$150,362,000 principal amount of the 2023 Notes had been validly tendered in the Tender Offer, which excludes US$4,127,000 aggregate principal amount of 2023 Notes that remain subject to guaranteed delivery procedures. The Company has accepted for purchase all of the 2023 Notes that were tendered and paid the Tender Offer Consideration (as defined below) (plus accrued interest) and settled the Tender Offer (other than with respect to the guaranteed delivery procedures) on August 17, 2020. The Company expects to issue a notice of redemption with respect to any remaining 2023 Notes not validly tendered on or before the Expiration Time.

Item 6. – Reliance on Section 7.1(2) of Regulation 51-102 :

N/A.

Item 7. – Omitted Information:

None.

Item 8. – Executive Officer:

The following executive officer is knowledgeable about the material change and this report:

Robert F. Hall Chief of Strategy, Legal Affairs and Corporate Secretary Tel.: (819) 363-5116

Item 9. – Date of Report:

August 17, 2020

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