Casella Waste draws down $430 million from loan for equity purchase

By Mary-Katherine Stinson

Lexington, Ky., July 3 – Casella Waste Systems, Inc. drew down the full $430 million term loan A commitment under a term loan A loan joinder from Bank of America, NA as administration agent on Friday to help fund a previously announced acquisition, the company said in an 8-K filing with the Securities and Exchange Commission.

On Friday, Casella completed its acquisition of 100% of the equity interests in Waste Industries of Maryland, LLC and its wholly owned subsidiary Pink Trash Co., Inc., Waste Industries of Delaware, LLC, Waste Industries of Pennsylvania, LLC and County Waste of Pennsylvania, LLC for roughly $525 million in cash.

As previously reported, the loan joinder provides that the maturity date of the term loan A will be Dec. 22, 2026.

The term loan A will be amortized in quarterly installments equal to 1.25% of the initial aggregate principal amount.

The interest rate margin above adjusted term SOFR will be based on Casella’s consolidated net leverage ratio, ranging from 162.5 basis points to 262.5 bps. Interest will initially be adjusted term SOFR plus 237.5 bps.

Casella Waste Systems had entered into a third amendment to its amended and restated credit agreement dated April 25 to provide for the loan.

The company is a regional solid waste, recycling and resource management services company based in Rutland, Vt.

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