Feb 13, 2009. /Lesprom Network/. Cascades Inc. has entered into an agreement to amend its existing bank credit agreement, the company said in a press release received by Lesprom Network. Under the terms of the amendment the existing financial covenants, namely the maximum funded debt to capitalization ratio of 65% and the minimum interest coverage ratio of 2.25x, will remain unchanged until maturity in October 2012. In consideration of this covenant extension the variable interest rate applicable to borrowings outstanding was increased by 200 basis points. The amendment also cancels the unsecured revolving credit facility in the amount of $100 million which was originally scheduled to terminate in June 2009. The amount of the Company's secured revolving credit and term facilities ($750 million and $100 million respectively) and their maturity date (December 2011 and October 2012 respectively) stay unchanged. In addition, the amendment should be implemented in the coming weeks. Commenting on the amendment, Mr. Alain Lemaire, President and CEO stated: "This measure constitutes one more step in our ongoing efforts to improve financial flexibility. While we are currently within the requirements of our bank credit agreement and expect to remain so, we believe it is appropriate to pursue this amendment given the volatile economic environment. Moreover, despite the interest rate adjustment, the cost of borrowings under our facilities is lower than when we initially entered into the agreement. With cash availability standing at approximately $300 million, no debt maturity until the end of 2011 and a more favourable cost environment, I am confident that we have the resources necessary to continue developing Cascades through these uncertain times." Cascades produces, converts and markets packaging and tissue products composed mainly of recycled fibres.