Casella Waste Systems, Inc. Announces Offering of the Vermont Economic Development Authority Solid Waste Disposal Revenue Bonds

Rhea-AI Summary

Casella Waste Systems (NASDAQ:CWST) announced an offering of up to $25.0 million in Vermont Economic Development Authority Solid Waste Disposal Revenue Bonds. This represents the drawdown of remaining funds from a larger bond series, following an initial $35.0 million loan in June 2022.

The bonds will be guaranteed by Casella's subsidiaries and will be available to qualified institutional buyers under Rule 144A. The company plans to use the proceeds to finance capital projects in Vermont. The bonds must be drawn by June 1, 2025, and will not constitute indebtedness of the State of Vermont or the Issuer, being payable solely from remarketing proceeds and amounts received from Casella.

Positive

• Access to additional $25M in financing for capital projects
• Backed by Vermont Economic Development Authority
• Previously secured $35M from same bond series in June 2022

Negative

• time to draw down funds (must occur by June 1, 2025)
• Increases company's debt obligations
• Restricted to Vermont-based projects only

RUTLAND, Vt., Feb. 28, 2025 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (“Casella”) (NASDAQ:CWST), a regional solid waste, recycling and resource management services company, today announced an offering of up to $25.0 million aggregate principal amount of Vermont Economic Development Authority (the “Issuer”) Solid Waste Disposal Revenue Bonds (Casella Waste Systems, Inc. Project) Series 2022A-2 (the “Bonds”) under an indenture between the Issuer and the bond trustee, dated as of June 1, 2022 (the “Indenture”). The Bonds represent the drawdown (which would no longer be available to the Company if not occurring by June 1, 2025) of the remainder of the Vermont Economic Development Authority Solid Waste Disposal Revenue Bonds (Casella Waste Systems, Inc. Project) Series 2022, the initial proceeds of which, in the amount of $35.0 million, were loaned to the Company in June 2022. The Bonds will be guaranteed under a guaranty (the “Guaranty”) by all or substantially all of Casella’s subsidiaries (the “Guarantors”), as required by the terms of the loan agreement, dated as of June 1, 2022, between the Issuer and Casella (the “Loan Agreement”), pursuant to which the Issuer will loan the proceeds of the Bonds to Casella. Casella intends to use the net proceeds of the Bonds to finance and/or reimburse Casella for certain costs of certain capital projects in the State of Vermont.

The exact terms and timing of the offering of the Bonds will depend upon market conditions and other factors. There can be no assurance that all approvals with respect to the Bonds will be received, that all other conditions to the issuance of the Bonds will be satisfied or that the offering will be completed.

The Bonds will not be a general obligation of the Issuer and will not constitute indebtedness of or a charge against the general credit of the Issuer. The Bonds will not be a debt of the State of Vermont or any political subdivision of the State of Vermont, and will be payable solely from any remarketing proceeds and from amounts received from Casella under the terms of the Loan Agreement and from the Guarantors under the Guaranty.

The Bonds will be 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 may not be offered or sold in the United States absent registration or 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, including, among others, the statements regarding the offering of the Bonds and Casella’s expectations regarding the use of proceeds of the Bonds, 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. Casella cannot guarantee that the offering of the Bonds will be completed, that the Bond proceeds will be available or applied as expected or that it actually will achieve the plans, intentions, expectations or guidance 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: market conditions and Casella’s ability to consummate the offering of the Bonds, the receipt of all necessary consents and the satisfaction of all other closing conditions with respect to the offering of the Bonds, as well as additional risks and uncertainties detailed in Item 1A, “Risk Factors” in Casella’s Form 10-K for the fiscal year ended December 31, 2024 and in other filings that Casella periodically makes with the Securities and Exchange Commission. There can be no assurance that Casella will be able to complete the offering of the Bonds on the anticipated terms, or at all. 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.

Investors:

Jason Mead
Senior Vice President of Finance & Treasurer
(802) 772-2293

Media:

Jeff Weld
Vice President of Communications
(802) 772-2234
http://www.casella.com

FAQ

What is the size of Casella Waste Systems' (CWST) new bond offering in 2025?

Casella Waste Systems is offering up to $25.0 million in Vermont Economic Development Authority Solid Waste Disposal Revenue Bonds.

When is the deadline for CWST to draw down the bond proceeds?

The bonds must be drawn down by June 1, 2025, or the funding will no longer be available to the company.

How will CWST use the proceeds from the 2025 bond offering?

The proceeds will be used to finance and/or reimburse costs for certain capital projects in the State of Vermont.

Who can purchase the CWST bond offering?

The bonds will only be offered to qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933.