Casella Waste Systems, Inc. Announces Conversion and Remarketing of a Portion of FAME Solid Waste Disposal Revenue Bonds
January 11 2012 - 3:15PM
Marketwired
Casella Waste Systems, Inc. (NASDAQ: CWST), a regional solid waste,
recycling and resource management services company, announced today
that it intends to convert the interest rate period on, and
remarket, $21.4 million aggregate principal amount of Finance
Authority of Maine Solid Waste Disposal Revenue Bonds (Casella
Waste Systems, Inc. Project) Series 2005 (the "Bonds"). The Bonds
were originally issued on December 28, 2005 and have a final
maturity of January 1, 2025.
Following a mandatory tender for $21.4 million of the $25.0
million aggregate principal amount of Bonds currently outstanding,
and the satisfaction of certain conditions, the tendered Bonds are
expected to be converted from a weekly interest rate period to a 5
year fixed term interest rate period and will include additional
covenants and credit support for the benefit of holders of those
converted Bonds, including guarantees by certain subsidiaries of
Casella. Upon conversion to a 5 year fixed term interest rate
period, the converted Bonds will not be secured by a letter of
credit. The converted Bonds will be remarketed on February 1, 2012.
The remaining $3.6 million of outstanding bonds, the proceeds of
which were used to finance assets at Casella's Maine Energy
Recovery Company, will remain in a weekly interest rate period and
will remain secured by a letter of credit issued by Bank of
America, N.A.
The Bonds are being offered only to qualified institutional
buyers as defined in Rule 144A under the Securities Act of 1933, as
amended (the "Securities Act").
The Bonds have not been and will not be registered under the
Securities Act and will be offered and sold pursuant to an
applicable exemption from the registration requirements of the
Securities Act and other applicable securities laws.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the Bonds, nor shall there be any
sale of the Bonds in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such jurisdiction.
This notice is being issued pursuant to and in accordance with Rule
135c under the Securities Act.
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 "expects," "will," "intends," and other
similar expressions. Among the forward-looking statements in this
press release are statements regarding the conversion and
remarketing of the Bonds. All of these forward-looking statements
are based on current expectations and estimates and management's
beliefs and assumptions. Casella cannot guarantee that it will
complete the conversion and remarketing will be completed on the
terms disclosed in the forward-looking statements or at all. Such
forward-looking statements involve a number of risks and
uncertainties, including, among other things, market conditions,
potential changes in credit rating and Casella's ability to
successfully consummate the remarketing of the Bonds. Casella
expressly disclaims any obligation to update such statements to
reflect change in its expectations whether as a result of new
information, future events or otherwise, except as required.
Contact: Ned Coletta Vice President, Finance and Investor
Relations (802) 772-2239
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