Casella Waste Systems, Inc. Announces Pricing of Remarketed New York State Environmental Facilities Corporation Solid Waste Disposal Revenue Bonds

Rhea-AI Summary

Casella Waste Systems (NASDAQ:CWST) has announced the pricing of its remarketed $37.5 million New York State Environmental Facilities Corporation Solid Waste Disposal Revenue Bonds. The company will redeem $2.5 million of the original $40 million bonds with cash on hand on September 2, 2025.

The remarketed bonds will carry a new interest rate of 4.250% per annum for the period from September 2, 2025, to September 2, 2030. The bonds, which mature on September 1, 2050, will be guaranteed by substantially all of Casella's subsidiaries and are being offered exclusively to qualified institutional buyers under Rule 144A.

Positive

• New lower interest rate of 4.250% for the remarketed bonds
• Company has sufficient cash on hand to redeem $2.5 million of bonds
• Extended interest rate period secured until September 2030

Negative

• Bonds are restricted to qualified institutional buyers only, limiting potential investor base
• Company maintains substantial debt with bonds maturing in 2050

Insights

Corporate Finance Specialist

Casella refinancing $37.5M in bonds at 4.25% while redeeming $2.5M, optimizing debt structure with favorable terms.

This bond remarketing announcement reveals important adjustments to Casella's debt structure. The company is remarketing $37.5 million of its existing New York State Environmental Facilities Corporation Solid Waste Disposal Revenue Bonds while simultaneously redeeming $2.5 million with cash on hand. The remarketed bonds will carry a 4.25% interest rate for a 5-year period ending September 2030, replacing the previous interest rate period expiring September 1, 2025.

The 4.25% rate represents reasonably favorable financing in the current interest rate environment, particularly for longer-term debt extending to 2050. This rate-setting effectively locks in Casella's borrowing costs on this portion of their debt for the next five years, providing predictability for financial planning. The modest $2.5 million redemption signals incremental deleveraging using available cash resources, reflecting sound balance sheet management.

The guaranteed structure, backed by substantially all of Casella's subsidiaries, maintains the company's existing security arrangements without introducing new encumbrances. By utilizing tax-exempt environmental facilities bonds, Casella continues to optimize its capital structure with potentially lower-cost financing than conventional corporate debt, appropriate for a waste management company with environmental infrastructure needs.

RUTLAND, Vt., Aug. 28, 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 $37.5 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-1 issued on September 2, 2020 (collectively, the “Bonds”). The Bonds were originally issued in the aggregate principal amount of $40.0 million and have a final maturity of September 1, 2050. It is expected that $2.5 million of the aggregate principal amount of Bonds will be redeemed by Casella on September 2, 2025 with cash on hand, and the remaining $37.5 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 period under which the Bonds were previously issued expires on September 1, 2025, and accordingly, the Bonds are subject to mandatory tender on September 2, 2025. Casella expects that the Bonds will be remarketed on September 2, 2025 at a new interest rate of 4.250% per annum for a new interest rate period commencing on September 2, 2025 and ending on September 2, 2030. The remarketing and redemption are expected to become effective on September 2, 2025.

The Bonds have been, and the Remarketed Bonds will be, guaranteed pursuant to a Guaranty Agreement (the “Guaranty”) by all or substantially all of Casella’s subsidiaries (the “Guarantors”), 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 New York, and are payable solely from amounts received from Casella under the terms of the Indenture and from the Guarantors under the Guaranty.

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 remarketing proceeds will be available or applied as expected or that it 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.

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 4.250% per annum interest rate for the period from September 2, 2025, to September 2, 2030.

How much of Casella Waste Systems' bonds are being remarketed in 2025?

$37.5 million of the bonds are being remarketed, while $2.5 million of the original $40 million will be redeemed with cash on hand.

When do Casella Waste Systems' (CWST) remarketed bonds mature?

The bonds have a final maturity date of September 1, 2050.

Who can purchase Casella Waste Systems' remarketed bonds?

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

Are Casella's remarketed bonds backed by New York State?

No, the bonds are not a general obligation or debt of the New York State or the Issuer. They are payable solely from amounts received from Casella and its guarantors.