Casella Waste Systems, Inc. Announces Closing of $650 Million Amended and Restated Credit Facility

Rhea-AI Summary

Casella Waste Systems (NASDAQ: CWST) announced on December 22, 2021, that it secured a new $650 million credit facility, which replaces its previous $550 million credit agreement. The new facility includes a $350 million term loan and a $300 million revolving credit line, with lower interest margins for LIBOR-based borrowings, now between 1.125% and 2.125%. This agreement, maturing on December 22, 2026, also introduces provisions to transition from LIBOR to a SOFR-based benchmark. Details will be provided in a forthcoming Current Report on Form 8-K.

Positive

• Secured a $650 million credit facility, enhancing financial flexibility.
• Lower interest rates on term and revolving loans, improving cost structure.
• Extended maturity of credit facility to December 22, 2026, providing long-term stability.

Negative

• None.

RUTLAND, Vt., Dec. 28, 2021 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (NASDAQ: CWST), a regional solid waste, recycling and resource management services company, announced that on December 22, 2021, it entered into a $650 million Amended and Restated Credit Agreement with Bank of America, N.A., as administrative agent and swing line lender, Bank of America, N.A., Citizens Bank, N.A., JPMorgan Chase Bank N.A. and Comerica Bank as joint lead arrangers and joint bookrunners, and certain other agents and lenders (the “Credit Facility”). The Credit Facility matures on December 22, 2026 and replaces Casella’s prior $550 million credit facility.

The Credit Facility provides for a term loan A facility in the amount of $350 million and a revolving credit facility in the principal amount of up to $300 million, with a $75 million sublimit for letters of credit. The interest rate margin applicable to LIBOR based borrowings has been reduced, in the case of term loans, to 1.125% to 2.125% (from the previous range of 1.25% to 2.25%) based on consolidated net leverage ratio, and in the case of revolving loans, to a range of 1.125% to 2.125% (from the previous range of 1.25% to 2.25%) based on consolidated net leverage ratio. The Credit Facility contains customary provisions related to replacing the LIBOR benchmark with a SOFR based benchmark for calculating interest.   Additional information regarding the Credit Facility will be included in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission.

About Casella Waste Systems, Inc.

Casella Waste Systems, Inc., headquartered in Rutland, Vermont, provides solid waste management services consisting of collection, transfer, disposal, and recycling services in the northeastern United States. For further information, investors contact Ned Coletta, Chief Financial Officer at (802) 772-2239; media contact Joseph Fusco, Vice President at (802) 772-2247; or visit the Company’s website at http://www.casella.com.

Contact:

Ned Coletta
Chief Financial Officer
(802) 772-2239

FAQ

What is the new credit facility amount announced by Casella Waste Systems on December 22, 2021?

Casella Waste Systems announced a new credit facility of $650 million.

What are the terms of the credit facility for Casella Waste Systems?

The credit facility includes a $350 million term loan and a $300 million revolving credit line, maturing December 22, 2026.

What benefits does the new credit facility provide to Casella Waste Systems?

The new facility offers lower interest rates on loans and improved financial flexibility.

When will details about the new credit facility be available?

Details regarding the credit facility will be included in a Current Report on Form 8-K.

How has Casella Waste Systems' interest rate margin changed with the new credit facility?

The interest rate margin has been reduced to a range of 1.125% to 2.125%.