Casella Waste secures $45M in revenue bonds for Maine projects

RUTLAND, Vt. - Casella Waste (NASDAQ:CWST) Systems, Inc. (NASDAQ:CWST), a regional solid waste and resource management services company with a market capitalization of $6.7 billion, has priced an offering of $45 million in revenue bonds, with an anticipated closing date of December 23, 2024. According to InvestingPro data, the company currently trades above its Fair Value, while maintaining strong revenue growth of 26.5% over the last twelve months. The bonds, issued by the Finance Authority of Maine, carry a 4.625% annual interest rate through June 1, 2035, and are set to mature on December 1, 2047.

The Solid Waste Disposal Revenue Bonds, guaranteed by most of Casella's subsidiaries, will not be a general obligation of the Authority and will not represent a debt of the State of Maine or its political subdivisions. They are payable solely through remarketing proceeds and payments from Casella and its guarantors under the agreed terms. InvestingPro analysis shows the company operates with a moderate debt level and maintains healthy liquidity with a current ratio of 2.55, indicating strong ability to meet its financial obligations.

Casella intends to allocate the bond proceeds to fund qualifying capital projects in Maine, cover issuance costs, and refinance the Authority's Solid Waste Disposal Revenue Bonds Series 2005, which were similarly used for project costs. The 2005 Bonds' maturity date is January 1, 2025, with payment required the following day.

The offering is directed exclusively at qualified institutional buyers, as defined in Rule 144A under the Securities Act of 1933. The bonds have not been registered under the Securities Act and may only be sold in compliance with registration exemptions.

Casella cautions that there is no guarantee that all approvals for the bonds will be obtained or that the offering will be completed as planned. The company's forward-looking statements regarding the bond offering and the use of proceeds are subject to risks, including market conditions and the ability to close the offering on anticipated terms.

This news is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the bonds. For a comprehensive analysis of Casella Waste Systems' financial health and growth prospects, investors can access detailed Pro Research Reports and additional financial metrics through InvestingPro, which covers over 1,400 US stocks with in-depth analysis and actionable insights.

In other recent news, Casella Waste Systems reported a significant revenue growth of 16.7% year-over-year to $411.6 million in its third-quarter earnings for 2024, largely attributed to acquisitions and organic growth. The company also registered a 14.9% growth in adjusted EBITDA, reaching $102.9 million. However, challenges such as lower landfill volumes and increased expenses led to a decrease in adjusted net income to $15.9 million.

In addition, Casella completed the acquisition of Royal, contributing to the company's growth expectations. Despite a decline in landfill volumes, the average price per ton increased by 7.1%, and solid waste revenue grew by 17.3% due to price hikes. The company also managed to raise over $500 million in financing for future mergers and acquisitions activities.

In a recent development, Casella announced the planned closure of the Ontario County landfill in New York by the end of 2028. This decision aligns with the company's existing operating plan and is not expected to materially affect its financial accounting for the landfill. Casella plans to reallocate the waste currently managed at the Ontario site to other landfills it operates in New York and Pennsylvania.

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