Casella Waste Systems, Inc. Announces Pricing of Up to $35.0 Million of New York State Environmental Facilities Corporation Solid Waste Disposal Revenue Bonds (Casella Waste Systems, Inc. Project) Series 2020R-2

RUTLAND, Vt., Aug. 09, 2023 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (“Casella”) (NASDAQ:CWST), a regional solid waste, recycling and resource management services company, today announced that it has priced the previously announced offering of up to $35.0 million aggregate principal amount of New York State Environmental Facilities Corporation (the “Issuer”) Solid Waste Disposal Revenue Bonds (Casella Waste Systems, Inc. Project) Series 2020R-2 (the “Bonds”) to be issued under an indenture between the Issuer and the bond trustee, dated as of September 1, 2020 (the “Indenture”). The Bonds represent the drawdown (which would no longer be available to the Company if not occurring by September 2, 2023) of the remainder of the New York State Environmental Facilities Corporation Solid Waste Disposal Revenue Bonds Series 2020, the initial proceeds of which, in the amount of $40.0 million, were issued in September 2020.

During the initial 7-year term fixed interest rate period, the interest rate on the Bonds will be 5.125% per annum, and the Bonds will be guaranteed under an amended and restated guaranty (the “Guaranty”) by substantially all of Casella’s subsidiaries (the “Guarantors”), as required by the terms of a Loan Agreement, dated as of September 1, 2020, between the Issuer and Casella (the “Loan Agreement”) pursuant to which the Issuer will loan the proceeds of the Bonds to Casella. The Bonds will mature on September 1, 2050. The issuance of the Bonds is expected to close on August 24, 2023. Casella intends to use the net proceeds of the Bonds to finance and/or reimburse certain costs of certain capital projects in the State of New York.

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 issuance of the Bonds 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 New York and will be payable solely from remarketing proceeds and from amounts received from Casella under the terms of the Loan Agreement and from the Guarantors under the Guaranty.

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 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.