Casella Waste lifts credit facility to $650 million, extends to December 2026

By Rebecca Melvin

Concord, N.H., Dec. 29 – Casella Waste Systems Inc. entered into a $650 million amended and restated credit agreement on Dec. 22 with Bank of America NA as administrative agent and swingline lender, according to a company news release and 8-K filed with the Securities and Exchange Commission.

The facility matures on Dec. 22, 2026 and replaces Casella’s prior $550 million credit facility.

The new facility provides for a $350 million term loan A facility and a $300 million revolving credit facility with a $75 million sublimit for letters of credit. Additional loans of up to the greater of $125 million (plus the amount of certain voluntary prepayments) and an additional amount subject to consolidated secured net leverage ratio tests may be made available upon the company’s request, provided it is not in default.

Interest to be paid on the term loans and revolving loans has been reduced to Libor plus 112.5 basis points to 212.5 bps based on leverage, from the previous range of 125 bps to 225 bps. The interest margin is being set initially at Libor plus 137.5 bps.

There is also a commitment fee of Libor plus 20 bps to 40 bps based on leverage, with the initial fee to be set at 20 bps.

The facility contains customary provisions related to replacing the Libor benchmark with a SOFR-based benchmark.

Casella will pay revolving lenders a fee for letters of credit equal to the applicable interest margin for Libor loans under the revolver, subject to increase by 200 bps per annum during the continuance of an event of default. It will also pay each issuing bank of any letter of credit a fronting fee equal to 25 bps per annum on the face amount of each letter of credit, plus customary issuance, administrative and other fees and costs.

Bank of America NA, Citizens Bank NA, JPMorgan Chase Bank NA and Comerica Bank are joint lead arrangers and joint bookrunners, and certain other agents and lenders are the joint lead arrangers on the deal.

Proceeds will be used for working capital, permitted acquisitions, permitted investments, dividend and distributions and other general corporate purposes.

Casella is a Rutland, Vt.-based solid waste, recycling and resource management services company.

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