Casella Waste upsizes term loan to $130 million, downsizes revolver to $177.5 million

By Sara Rosenberg

New York, July 1 - Casella Waste Systems Inc. increased the size of its term loan to $130 million from $100 million and decreased the size of its revolver to $177.5 million, including letters of credit, from $180 million, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

Price talk on the term loan was left unchanged at Libor plus 500 basis points with a 2% Libor floor and an original issue discount of 941/2, market sources said.

And, price talk on the revolver was also left unchanged at Libor plus 450 bps with a 2% Libor floor, sources added.

Bank of America and Comerica are the lead banks on the now $307.5 million senior secured first-lien credit facility (Ba2/BB).

Proceeds from the new facility, along with proceeds from second-lien notes offering, will be used to repay the company's existing credit facility.

On Wednesday, the bond offering was reduced to $180 million from $205 million, with those funds compensated for by the upsized term loan.

Casella is a Rutland, Vt.-based solid waste, recycling and resource management services company.

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