Casella Waste Systems Inc. : Casella Waste Systems, Inc. Announces Conversion and Remarketing of a Portion of FAME Solid Waste Disposal Revenue Bonds
January 12, 2012 at 03:44 am IST
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RUTLAND, VT -- (MARKET WIRE) -- 01/11/12 -- Casella Waste
Systems, Inc. (NASDAQ: CWST), a regional solid waste,
recycling and resource management services company,
announced today that it intends to convert the interest
rate period on, and remarket, $21.4 million aggregate
principal amount of Finance Authority of Maine Solid Waste
Disposal Revenue Bonds (Casella Waste Systems, Inc.
Project) Series 2005 (the "Bonds"). The Bonds
were originally issued on December 28, 2005 and have a
final maturity of January 1, 2025.
Following a mandatory tender for $21.4 million of the $25.0
million aggregate principal amount of Bonds currently
outstanding, and the satisfaction of certain conditions,
the tendered Bonds are expected to be converted from a
weekly interest rate period to a 5 year fixed term interest
rate period and will include additional covenants and
credit support for the benefit of holders of those
converted Bonds, including guarantees by certain
subsidiaries of Casella. Upon conversion to a 5 year fixed
term interest rate period, the converted Bonds will not be
secured by a letter of credit. The converted Bonds will be
remarketed on February 1, 2012. The remaining $3.6 million
of outstanding bonds, the proceeds of which were used to
finance assets at Casella's Maine Energy Recovery
Company, will remain in a weekly interest rate period and
will remain secured by a letter of credit issued by Bank of
America, N.A.
The Bonds are being offered only to qualified institutional
buyers as defined in Rule 144A under the Securities Act of
1933, as amended (the "Securities Act").
The Bonds have not been and will not be registered under
the Securities Act and will be offered and sold pursuant to
an applicable exemption from the registration requirements
of the Securities Act and other applicable securities laws.
This press release shall not constitute an offer to sell or
the solicitation of an offer to buy the Bonds, nor shall
there be any sale of the Bonds in any jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
the registration or qualification under the securities laws
of any such jurisdiction. This notice is being issued
pursuant to and in accordance with Rule 135c under the
Securities Act.
Safe Harbor Statement
Certain matters discussed in this press release are
"forward-looking statements" intended to qualify
for the safe harbors from liability established by the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can generally be identified as
such by the context of the statements, including words such
as "expects," "will,"
"intends," and other similar expressions. Among
the forward-looking statements in this press release are
statements regarding the conversion and remarketing of the
Bonds. All of these forward-looking statements are based on
current expectations and estimates and management's
beliefs and assumptions. Casella cannot guarantee that it
will complete the conversion and remarketing will be
completed on the terms disclosed in the forward-looking
statements or at all. Such forward-looking statements
involve a number of risks and uncertainties, including,
among other things, market conditions, potential changes in
credit rating and Casella's ability to successfully
consummate the remarketing of the Bonds. Casella expressly
disclaims any obligation to update such statements to
reflect change in its expectations whether as a result of
new information, future events or otherwise, except as
required.
Contact:
Ned Coletta
Vice President, Finance and Investor Relations
(802) 772-2239
Casella Waste Systems, Inc. is a regional, vertically integrated solid waste services company. The Company manages its solid waste operations on a geographic basis through three regional operating segments: the Eastern, Western and Mid-Atlantic regions. It manages its resource renewal operations through the Resource Solutions operating segment, which leverages its core competencies in materials processing, industrial recycling, organics and resource management service offerings to deliver a solution for its commercial, municipal, institutional and industrial customers. It operates approximately 64 solid waste collection operations, 71 transfer stations, 29 recycling and processing facilities, eight Subtitle D landfills, three landfill gas-to-energy facilities and one landfill permitted to accept construction and demolition materials. It provides integrated solid waste services in Vermont, New Hampshire, New York, Massachusetts, Connecticut, Maine, Pennsylvania, Delaware and Maryland.