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

Rhea-AI Summary

Casella Waste Systems (NASDAQ:CWST) has announced the remarketing of $37.5 million in New York State Environmental Facilities Corporation Solid Waste Disposal Revenue Bonds. The company plans to redeem $2.5 million of the original $40 million bonds on September 2, 2025.

The bonds, which mature on September 1, 2050, will undergo mandatory tender and remarketing on September 2, 2025, establishing a new interest rate period. The bonds are guaranteed by Casella's subsidiaries but do not constitute a general obligation of the issuer or New York State. The offering is exclusively available to qualified institutional buyers under Rule 144A.

["Bonds are fully guaranteed by Casella's subsidiaries, providing security for investors", "Long-term maturity date of September 1, 2050 provides stable financing structure"]

Positive

• None.

Negative

• Limited to qualified institutional buyers only, restricting potential investor base
• Subject to market conditions and other factors that may affect remarketing completion

Insights

Financial Analyst

Casella's routine bond remarketing represents standard debt management with minimal financial impact.

Casella Waste Systems is remarketing $37.5 million of New York State Environmental Facilities Corporation Solid Waste Disposal Revenue Bonds, while redeeming $2.5 million of the original $40 million issuance from 2020. This transaction is occurring because the current interest rate period expires on September 1, 2025, triggering a mandatory tender and remarketing at a new interest rate beginning September 2.

This represents routine debt management rather than a significant financial event. The bonds maintain their original September 2050 maturity date, and the company isn't taking on additional debt but rather refinancing existing obligations. The remarketed bonds will only be offered to qualified institutional buyers under Rule 144A.

From a financial structure perspective, this transaction maintains Casella's existing debt profile with minimal changes. The $2.5 million redemption represents just 6.25% of the original bond amount - a modest deleveraging. The remarketing's primary purpose appears to be establishing a new interest rate for the next period, which could potentially improve or worsen interest expenses depending on current market conditions compared to 2020 rates.

What's notable is that these bonds are guaranteed by substantially all of Casella's subsidiaries but don't constitute an obligation of New York State. This demonstrates how waste management companies often utilize specialized environmental financing instruments that benefit from tax advantages while maintaining the full financial backing of the corporate entity.

RUTLAND, Vt., Aug. 18, 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 commenced the 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 in the stated principal amount of $40.0 million (collectively, the “Bonds”). It is expected that $2.5 million of the aggregate principal amount of Bonds will be redeemed by Casella on September 2, 2025, and the remaining $37.5 million of the aggregate principal amount of Bonds (the “Remarketed Bonds”) will be remarketed on such date.

The Bonds have a final maturity of September 1, 2050. Pursuant to the indenture under which the Bonds were offered (the “Indenture”), the interest rate period under which the Bonds were previously issued is expiring on September 1, 2025, and accordingly, Casella expects that the Bonds will be subject to mandatory tender and will be remarketed on September 2, 2025 at a new interest rate for a new interest rate period commencing on September 2, 2025. The Bonds have been guaranteed by all or substantially all of Casella’s subsidiaries, as required pursuant to the terms of the loan agreement pursuant to which the Issuer loaned the proceeds of the Bonds to Casella. The 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 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. The remarketing and redemption is expected to become effective on September 2, 2025.

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 interest rate period, interest rate and timing of the remarketing of the Remarketed Bonds will depend upon market conditions and other factors, and there can be no assurance that the remarketing or redemption will be completed. 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 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 total value of Casella Waste Systems' (CWST) bond remarketing in 2025?

Casella is remarketing $37.5 million in bonds, while redeeming $2.5 million from the original $40 million issuance.

When will CWST's remarketed bonds mature?

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

Who can purchase Casella Waste Systems' remarketed bonds?

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

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

No, the bonds are not a debt of New York State and are payable solely from amounts received from Casella. They are guaranteed by Casella's subsidiaries.

When will the CWST bond remarketing become effective?

The remarketing and redemption is expected to become effective on September 2, 2025.