Casella Waste Systems, Inc. Announces Pricing of Remarketed Finance Authority of Maine Solid Waste Disposal Revenue Bonds

Rhea-AI Summary

Casella Waste Systems (NASDAQ:CWST) has announced the pricing of its remarketed Finance Authority of Maine Solid Waste Disposal Revenue Bonds. The company will remarket $29.0 million of bonds and redeem $1.0 million with cash on hand on August 1, 2025.

The remarketed bonds, to be designated as Series 2015R-3, will carry a 5.000% interest rate for the period from August 1, 2025, to July 31, 2035. The bonds, guaranteed by substantially all of Casella's subsidiaries, will be offered exclusively to qualified institutional buyers under Rule 144A.

These bonds are not general obligations of the Finance Authority of Maine or the State of Maine, and are payable solely from amounts received from Casella under the indenture terms.

Positive

• New fixed interest rate of 5.000% provides rate certainty through 2035
• Company demonstrates financial flexibility by redeeming $1.0M with cash on hand

Negative

• Additional debt obligations could impact company's financial flexibility

Insights

Financial Analyst

Casella Waste remarketing $29M of bonds at 5% interest with $1M redemption, signaling debt refinancing strategy amid current rate environment.

Casella Waste Systems has announced the remarketing of $29 million in Solid Waste Disposal Revenue Bonds originally issued in 2015 and 2018, while simultaneously redeeming $1 million from cash reserves. The remarketed bonds will carry a 5.000% interest rate for a 10-year period ending July 31, 2035.

This financial maneuver represents a strategic refinancing approach, as the previous interest rate period expires on July 31, 2025. The remarketed bonds, to be designated as Series 2015R-3, maintain the original final maturity date of August 1, 2035, indicating no extension of the company's long-term debt horizon.

The 5% interest rate is notable in the current interest rate environment. By choosing to remarket rather than pursue new financing vehicles, Casella demonstrates confidence in its existing debt structure while potentially optimizing its cost of capital. The redemption of $1 million from cash reserves signals disciplined capital allocation, gradually reducing total debt without significantly impacting liquidity.

The remarketed bonds maintain their specialized status as they're only available to qualified institutional buyers under Rule 144A, limiting retail investor exposure to this debt instrument. The continued guarantee by Casella's subsidiaries provides structural protection for bondholders while maintaining the tax-advantaged solid waste disposal revenue bond classification.

This transaction represents normal debt management operations rather than a transformative financial event, aligning with typical corporate treasury functions for maintaining optimal capital structures and managing interest rate exposure across debt maturities.

RUTLAND, Vt., July 31, 2025 (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 remarketing of $29.0 million aggregate principal amount of Finance Authority of Maine (the “Issuer”) Solid Waste Disposal Revenue Bonds (Casella Waste Systems, Inc. Project) Series 2015R-1 issued on August 27, 2015 and Series 2015R-2 issued on April 2, 2018 (collectively, the “Bonds”). The Bonds were originally issued in the aggregate principal amount of $30.0 million and have a final maturity of August 1, 2035. It is expected that $1.0 million of the aggregate principal amount of Bonds will be redeemed by Casella on August 1, 2025 with cash on hand, and the remaining $29.0 million of the aggregate principal amount of Bonds (the “Remarketed Bonds”) will be remarketed on such date. Pursuant to the indenture under which the Bonds were offered (the “Indenture”), the interest rate periods under which the Bonds were previously issued expire on July 31, 2025, and accordingly, the Bonds are subject to mandatory tender on August 1, 2025. Casella expects that the Bonds will be remarketed on August 1, 2025 at a new interest rate of 5.000% per annum for a new interest rate period commencing on August 1, 2025 and ending on July 31, 2035. The remarketing and redemption are expected to become effective on August 1, 2025, and the Remarketed Bonds are anticipated to be sold and designated as a single bond identified as Series 2015R-3.

The Bonds have been, and the Remarketed Bonds will be, guaranteed by all or substantially all of Casella’s subsidiaries, as required pursuant to the terms of the financing agreement pursuant to which the Issuer loaned the proceeds of the Bonds to Casella. The Bonds and the Remarketed Bonds are not a general obligation of the Issuer and do not constitute an indebtedness of or a charge against the general credit of the Issuer. The Bonds and the Remarketed Bonds are not a debt of the State of Maine and are payable solely from amounts received from Casella under the terms of the Indenture.

The Remarketed 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 Remarketed 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 Remarketed Bonds, nor shall there be any sale of the Remarketed 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 remarketing of the Remarketed 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 remarketing or redemption 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 remarketing of the Remarketed Bonds, the receipt of all necessary consents and the satisfaction of all other closing conditions with respect to the remarketing of the Remarketed 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 remarketing or redemption 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.

Contact

Investors:
Brian J. Butler, CFA
Vice President of Investor Relations
(802) 855-4070

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

FAQ

What is the new interest rate for Casella Waste Systems' (CWST) remarketed bonds?

The remarketed bonds will carry a 5.000% interest rate for the period from August 1, 2025, to July 31, 2035.

How much of Casella Waste Systems' bonds are being remarketed and redeemed?

Casella is remarketing $29.0 million of bonds and redeeming $1.0 million with cash on hand on August 1, 2025.

Who can purchase Casella Waste Systems' remarketed bonds?

The remarketed bonds are being offered exclusively to qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933.

Are the CWST remarketed bonds backed by the State of Maine?

No, the bonds are not a debt of the State of Maine and are payable solely from amounts received from Casella under the indenture terms.

When do Casella Waste Systems' remarketed bonds mature?

The bonds have a final maturity date of August 1, 2035.