We propose and analyse a cascaded optical parametric system which involves three interacting modes across two octaves of frequency difference. Our system, combining degenerate optical parametric oscillation (OPO) with second harmonic generation (SHG), promises to be a useful source of squeezed and entangled light at three differing frequencies. We show how changes in damping rates and the ratio of the two concurrent nonlinearities affect the quantum correlations in the output fields. We analyse the threshold behaviour, showing how the normal OPO threshold is changed by the addition of the SHG interactions. We also find that the inclusion of the OPO interaction removes the self-pulsing behaviour found in normal SHG. Finally, we show how the Einstein-Podolsky-Rosen correlations can be controlled by the injection of a coherent seed field at the lower frequency.