Casella Waste Systems Announces Pricing of Public Offering of 2,350,000 Shares of Class A Common Stock

Rhea-AI Summary

On October 21, 2020, Casella Waste Systems (NASDAQ:CWST) announced a public offering of 2,350,000 shares of Class A common stock, priced at $56.00 per share, aiming for gross proceeds of approximately $131.6 million. The company has granted underwriters a 30-day option to purchase an additional 352,500 shares. Proceeds will be utilized for general corporate purposes, including potential acquisitions and capital expenditures. The offering is expected to close around October 23, 2020, and is conducted under a registration statement filed with the SEC.

Positive

• Intended use of proceeds includes potential acquisitions and operational expansions.
• Gross proceeds of approximately $131.6 million enhance capital for growth initiatives.

Negative

• The offering may lead to shareholder dilution due to the increase in shares outstanding.

RUTLAND, Vt., Oct. 21, 2020 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (NASDAQ:CWST), a regional solid waste, recycling and resource management services company, announced today the pricing of an underwritten public offering of 2,350,000 shares of its Class A common stock at a public offering price of $56.00 per share, before offering discounts. The offering will result in aggregate gross proceeds of approximately $131.6 million to Casella, before deducting underwriting discounts and offering expenses. Casella also granted the underwriters of the offering an option for a period of 30 days to purchase up to an additional 352,500 shares of Class A common stock. All of the shares in the offering are to be sold by Casella. The offering is expected to close on or about October 23, 2020, subject to customary closing conditions.

Casella intends to use the net proceeds from the offering for general corporate purposes, including potential acquisitions or development of new operations or assets with the goal of complementing or expanding its business, working capital and capital expenditures.

Raymond James and BofA Securities are acting as joint book-running managers for the offering. Stifel, UBS Investment Bank and Keybanc Capital Markets are acting as co-managers for the offering.

The shares are being offered by Casella pursuant to an effective automatic shelf registration statement (including a prospectus) that was previously filed with the U.S. Securities and Exchange Commission (“SEC”).  The offering is being made only by means of the written prospectus and prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement relating to and describing the terms of the offering was filed with the SEC on October 20, 2020 and is available on the SEC’s website at www.sec.gov.  A final prospectus supplement relating to the offering will be filed with the SEC and will form a part of the registration statement, and will also be available on the SEC’s website.

Copies of the final prospectus supplement and accompanying prospectus relating to the offering, when available, may also be obtained from Raymond James & Associates, Inc., Attention: Equity Syndicate, 880 Carillon Parkway, St. Petersburg, Florida 33716, or by telephone at (800) 248-8863, or by e-mail to prospectus@raymondjames.com; or BofA Securities, Inc., Attn: Prospectus Department, at 200 North College Street, NC1-004-03-43, Charlotte NC 28255-0001, telephone: 800-294-1322 or email: dg.prospectus_requests@bofa.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification of these securities under the securities laws of any such state or jurisdiction.

About Casella Waste Systems, Inc.

Casella Waste Systems, Inc., headquartered in Rutland, Vermont, provides resource management expertise and services to residential, commercial, municipal and industrial customers, primarily in the areas of solid waste collection and disposal, transfer, recycling and organics services in the northeastern United States.

Safe Harbor Statement

Certain matters discussed in this press release, including, among others, our expectations regarding the completion of the public offering and our intended use of proceeds from the offering, 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 “believe,” “expect,” “anticipate,” “plan,” “may,” “will,” “would,” “intend,” “estimate,” “guidance” 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 industry and markets in which Casella operates and management’s beliefs and assumptions. There can be no assurance that Casella will be able to complete the offering and Casella cannot guarantee that it actually will achieve the plans, intentions or expectations disclosed in the forward-looking statements made. Such forward-looking statements involve a number of risks and uncertainties any one or more of which could cause actual results to differ materially from those described in Casella’s forward-looking statements. Such risks and uncertainties include or relate to, among other things: risks and uncertainties relating to the satisfaction of customary closing conditions related to the public offering and the impact of general economic, industry or political conditions in the United States or internationally. Additional risks and uncertainties relating to the offering, Casella and its business are discussed in the prospectus supplement related to the offering filed with the SEC on or about the date hereof and in other filings that Casella periodically makes with the SEC. In addition, the forward-looking statements included in this press release represent Casella’s views as of the date of this press release. Casella undertakes 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. These forward-looking statements should not be relied upon as representing Casella’s views as of any date subsequent to the date of this press release.

Investors:
Ned Coletta
Chief Financial Officer
(802) 772-2239

Media:
Joseph Fusco
Vice President
(802) 772-2247

FAQ

What is the pricing of Casella Waste Systems' recent public offering?

Casella Waste Systems priced its public offering at $56.00 per share.

How many shares is Casella Waste Systems offering?

Casella is offering 2,350,000 shares, with an option for underwriters to purchase an additional 352,500 shares.

What are the intended uses for the proceeds from Casella's offering?

The proceeds will be used for general corporate purposes, including potential acquisitions and capital expenditures.

When is the expected closing date for the offering?

The offering is expected to close on or about October 23, 2020.

What could be a potential negative impact of Casella's public offering?

The offering could lead to shareholder dilution as it increases the total number of shares outstanding.