Casella Waste Secures New Debt
June 26, 2009
Casella Waste, a Rutland, Vt.-based waste management company, has secured a $100 million term loan and $205 million in senior secured second lien notes due 2014.
The notes and the term loan have yet to price. The underwriter could not be determined, and calls to the company were not returned.
Casella plans to use the proceeds from the notes and the term loan to repay some of its existing debt.
Moody’s Investors Service assigned a Ba2 rating to the term loan and a B2 rating to the new notes.
“The successful completion of the planned refinancing will alleviate the downwards rating pressure related to uncertainty about Casella's liquidity position, driven by the currency of the existing debt structure and the potential to fall, or remain, out of compliance with one or more financial covenants of the existing credit facility,” said Moody's analyst, Jonathan Root. However, “it does not address the potential pressure on earnings and operating cash flow of the continuing weak demand environment, which Moody's expects could linger well into 2010.”
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