Casella Waste Systems announces $75 million term loan via Banc of America

By Paul A. Harris

St. Louis, April 4 - Casella Waste Systems, Inc. plans to add a $75 million incremental term loan B its existing $450 million of senior secured credit facilities, the company said in an 8-K filing on Wednesday with the Securities and Exchange Commission.

Banc of America Securities LLC will lead the deal, which also seeks to amend the existing facility.

The amendment is expected to consist of the following two separate votes.

A 51% vote is required from all existing lenders to permit the resetting of the accordion feature, as well as to change to the following definitions:

• "Consolidated adjusted net income" to allow for the exclusion of certain cash and non-cash charges;

• "Consolidated net worth" to allow for the changes made to the consolidated adjusted net income definition.

In addition the Rutland, Vt., company is seeking to change to the leverage requirement to allow for the redemption of its series A convertible preferred stock.

Casella also is seeking to amend its interest coverage, total leverage and senior leverage covenants.

Meanwhile a 100% vote is required from the existing revolving credit facility lenders only to permit an amendment to the company's revolver pricing grid.

Proceeds from the $75 million term loan B will be used to pay down the revolver and provide additional flexibility to redeem the series A redeemable convertible preferred stock, expected to be redeemed on Aug. 11.

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