Rutland, Vt.-based Casella Waste Systems, Inc., a regional solid waste, recycling and resource management services company, announced an offering of up to $40.0 million aggregate principal amount of New York State Environmental Facilities Corporation Solid Waste Disposal Revenue Bonds Series 2020 under an indenture between the issuer and the bond trustee. The bonds will be guaranteed by substantially all of Casella’s subsidiaries, as required by the terms of 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 Casella for certain costs of certain capital projects in the state of New York.
The exact terms and timing of the offering of the bonds will depend upon market conditions and other factors. There can be no assurance that the offering will be completed.
One or more additional tranches of New York State Environmental Facilities Corporation Solid Waste Disposal Revenue Bonds Series 2020, in the aggregate principal amount of up to $35 million, 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 will not be a general obligation of the issuer and will not constitute indebtedness of or a charge against the general credit of the issuer. The bonds will not be a debt of the state of New York and will be payable solely from amounts received from Casella under the terms of the indenture.
Pursuant to the announced offering, the bonds will be offered only to qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933, as amended.
The bonds will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws.