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

Rhea-AI Summary

Casella Waste Systems (NASDAQ: CWST) announced an offering of up to $60 million in Solid Waste Disposal Revenue Bonds to finance capital projects in Vermont. Initially, $35 million will be issued, with the potential for an additional $25 million in future tranches. The bonds will be guaranteed by Casella’s subsidiaries and will not constitute a general obligation of the Issuer or Vermont state debt. The completion of the offering is contingent on market conditions, and the bonds will be offered only to qualified institutional buyers under Rule 144A.

Positive

• Offering of up to $60 million in Solid Waste Disposal Revenue Bonds indicates capital raising for growth.
• Initial tranche of $35 million shows commitment to funding Vermont project initiatives.

Negative

• No assurance that the bond offering will be completed, posing potential funding uncertainties.
• Bonds are not a general obligation of the issuer, which may limit investor confidence.

RUTLAND, Vt., May 03, 2022 (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 $60.0 million aggregate principal amount of Vermont Economic Development Authority (the “Issuer”) Solid Waste Disposal Revenue Bonds (Casella Waste Systems, Inc. Project) Series 2022 (the “Bonds”) under an indenture between the Issuer and the bond trustee (the “Indenture”). The Bonds, during any term interest rate period, will be guaranteed by substantially all of Casella’s subsidiaries, as required by the terms of the loan agreement pursuant to which the Issuer will loan the proceeds of the Bonds to Casella (the “Loan Agreement”). Initially, $35.0 million in principal amount of Bonds is anticipated to be issued under the Indenture, and 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 the offering will be completed.

One or more additional tranches of Bonds, in the aggregate principal amount of up to $25.0 million (the “Additional Bonds”), may be issued under the Indenture in the future, subject to the terms and conditions of the Indenture, market conditions and other factors.

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 and will be payable solely from amounts received from Casella under the terms of the Indenture.

Pursuant to the announced offering, 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 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 offering of the Bonds and the Additional Bonds (if any) 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 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, 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, 2021 and in other filings that the Company has made after such date and may make with the Securities and Exchange Commission in the future. 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 Vice President Finance (802) 772-2293
Media:
	Joseph Fusco Vice President (802) 772-2247 http://www.casella.com

FAQ

What is the purpose of Casella's $60 million bond offering?

The bond proceeds will finance capital projects in Vermont.

How much is initially planned to be issued in Casella's bond offering?

Initially, $35 million is anticipated to be issued.

Will Casella's bonds be a general obligation of the State of Vermont?

No, the bonds will not be a general obligation of the Issuer or the State of Vermont.

Who can purchase Casella's revenue bonds?

The bonds will be offered only to qualified institutional buyers under Rule 144A.

What are the risks associated with Casella's bond offering?

There is no assurance that the offering will be completed, which poses potential funding uncertainties.