Casella Waste Systems, Inc. announced that it has priced the previously announced offering of $35.0 million aggregate principal amount of Vermont Economic Development Authority (the Issuer) Solid Waste Disposal Revenue Bonds (Casella Waste Systems, Inc. Project) Series 2022 (the Bonds) to be issued under an indenture between the Issuer and the bond trustee (the Indenture). The Bonds will be guaranteed under a Guaranty (the Guaranty) by substantially all of Casella's subsidiaries (the Guarantors), as required by the terms of a Loan Agreement between the Issuer and Casella (the Loan Agreement) pursuant to which the Issuer will loan the proceeds of the Bonds to Casella. Casella intends to use the net proceeds of the Bonds to finance and/or reimburse certain costs of certain capital projects in the State of Vermont.
During the initial 5-year term fixed interest rate period, the interest rate on the Bonds will be 5.0%. The Bonds will mature on June 1, 2052. The issuance of the Bonds is expected to close on June 1, 2022.
There can be no assurance that the conditions to the issuance of the Bonds will be satisfied or that the issuance of the Bonds will be completed. One or more additional tranches of Vermont Economic Development Authority Solid Waste Disposal Revenue Bonds (Casella Waste Systems, Inc. Project) Series 2022, in the aggregate principal amount of up to $25.0 million (the Additional Bonds), may be issued under the Indenture in the future, subject to the terms and conditions of the Indenture, market conditions and other factors. 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).