Casella amends loan terms with Bank of America, modifies covenants

By Susanna Moon

Chicago, June 26 - Casella Waste Systems, Inc. amended its credit agreement on Tuesday with Bank of America, NA as administrative agent, swingline lender and letter-of-credit issuer, according to an 8-K filing with the Securities and Exchange Commission.

The amendment modified financial covenants as follows:

• Minimum interest coverage ratio of 2.15 times for the four fiscal quarters ending April 30 and 2.25 times for the period ending July 31 through maturity;

• Maximum consolidated total funded debt to consolidated EBITDA of 5.85 times for the four fiscal quarters ending April 30 through Jan. 31, 2015 and 5.75 times for the period ending April 30, 2015 through maturity; and

• Maximum consolidated senior funded debt to consolidated EBITDA of 2.5 times for the four fiscal quarters ending April 30 through Jan. 31, 2015 and 2.25 times for the period ending April 30, 2015 and thereafter.

The company's maximum annual capital expenditures were reduced to 1.1 times consolidated depreciation, depletion and amortization.

The credit agreement also was amended to add a new tier to the pricing grid, increasing the margin to Libor plus 400 bps when the ratio of consolidated total funded debt to consolidated EBITDA is 5.5 times or more.

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

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