Casella Waste Systems, Inc. has announced the closure of an amended and restated credit facility worth $1.5 billion. This new credit facility, which matures on September 27, 2029, replaces the company's previous $1.08 billion credit facility.
The credit facility comprises an $800 million term loan facility and a $700 million revolving credit facility, including a $155 million sublimit for letters of credit. Notably, the revolving credit facility was undrawn at closing, providing increased liquidity for general corporate purposes, including the execution of the company’s acquisition strategy.
Furthermore, the interest rate margin applicable to SOFR-based borrowings, including revolving loans, ranges from 1.300% to 2.175% based on the consolidated net leverage ratio.
The joint lead arrangers of the credit facility are BofA Securities, Inc., JPMorgan Chase Bank, N.A., Citizens Bank, N.A., TD Bank, N.A., Wells Fargo Securities, LLC, and Comerica Bank.
This new credit facility is expected to provide the company with ample financial flexibility and support its growth initiatives, as it continues to expand its resource management services to residential, commercial, municipal, institutional, and industrial customers primarily in the eastern United States.
The company's financial metrics and performance are likely to be positively impacted by this new credit facility, as it will provide additional financial resources for potential acquisitions and general corporate purposes. Today the company's shares have moved 0.7% to a price of $99.02. For the full picture, make sure to review Casella Waste Systems's 8-K report.
