Casella Waste Systems, Inc. Successfully Refinances Senior Secured Revolving Credit Facility
March 21 2011 - 3:05PM
Marketwired
Casella Waste Systems, Inc. (NASDAQ: CWST), a regional solid waste,
recycling and resource management services company, announced today
that it completed the refinancing of its existing senior secured
credit facility with an amended and restated senior secured credit
facility (the "Senior Secured Credit Facility") consisting of a
$227.5 million revolving credit and letter of credit facility (the
"Revolver Facility").
Highlights of the new Senior Secured Credit Facility
include:
- The new facility has a 5-year term, maturing in March
2016.
- The interest rate was reduced by 50bps from the existing
facility, with the interest rate initially set at LIBOR plus a
margin of 3.50% per annum.
- At the company's discretion, the new facility allows for
accordion advances up to an aggregate amount of $182.5 million,
subject to certain conditions including obtaining additional lender
commitments. This accordion capacity provides the company
flexibility to refinance its existing $180.0 million second lien
notes with borrowings under the new Senior Secured Credit Facility,
subject to certain conditions. The facility has a springing
maturity date if the company does not refinance its existing second
lien notes by March 1, 2014.
"Our team has done an excellent job over the past several months
executing against our long-term capital strategy to improve the
strength of our balance sheet," John W. Casella, chairman and CEO
of Casella Waste Systems, said. "With this successful refinancing,
the sale of our non-integrated recycling assets for $134.1 million
in early March, and the refinancing of our senior subordinated
notes in early February, we believe that we have driven significant
shareholder value and positioned ourselves well for the
future."
"Specifically, this refinancing improves our balance sheet
profile by moving out the maturity of our senior secured credit
facility to five years and reducing our cash interest costs,"
Casella said. "In addition, we expect that the accordion capacity
will provide us with an opportunity to call our expensive 11.00%
second lien notes when they become callable starting in July 2012
with lower cost senior secured borrowings."
The net proceeds from the new Senior Secured Credit Facility
were used to refinance the borrowings under the company's existing
$177.5 million senior secured credit facility due December 2012.
The company repaid its existing senior secured Term Loan B on March
2, 2011.
The interest rate under the new Senior Secured Credit Facility
will be initially set at LIBOR plus a margin of 3.50% per annum for
Eurodollar rate loans, and thereafter, the applicable margin will
be determined in accordance with the pricing grid as set forth in
the amended and restated credit agreement. The new Senior Secured
Credit Facility is subject to customary affirmative, negative, and
financial covenants.
Availability under the new Revolver Facility was at $125.2
million on March 18, 2011, after taking into account $52.6 million
of borrowings and $49.7 million of letters of credit.
About Casella Waste Systems, Inc.
Casella Waste Systems, Inc., headquartered in Rutland, Vermont,
provides solid waste, recycling and resource management services in
the northeastern United States. For further information, contact
Ned Coletta, vice president of finance and investor relations at
(802) 772-2239, or Ed Johnson, chief financial officer at (802)
772-2241, or visit the company's website at
http://www.casella.com.
Safe Harbor Statement
Certain matters discussed in this press release are
"forward-looking statements" intended to qualify for the safe
harbors from liability established by the Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
generally be identified as such by the context of the statements,
including words such as we "believe," "expect," "anticipate,"
"plan," "may," "will," "would," "intend," "estimate" and other
similar expressions, whether in the negative or affirmative. These
forward-looking statements are based on current expectations,
estimates, forecasts and projections about the disposition and the
industry and markets in which we operate and management's beliefs
and assumptions. We cannot guarantee that we actually will achieve
the plans, intentions or expectations disclosed in the
forward-looking statements made. Such forward-looking statements,
and all phases of our operations, involve a number of risks and
uncertainties, any one or more of which could cause actual results
to differ materially from those described in our forward-looking
statements. Such risks and uncertainties include or relate to,
among other things the commitment of lenders to fund accordion
advances and those risks detailed in Item 1A, "Risk Factors" in our
Form 10-K for the year ended April 30, 2010.
We undertake no obligation to update publicly any
forward-looking statements whether as a result of new information,
future events or otherwise, except as required by law.
For further information, contact: Ned Coletta Vice President of
Finance and Investor Relations (802) 772-2239 Ed Johnson Chief
Financial Officer (802) 772-2241 http://www.casella.com
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