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Casella Waste looking to refinance senior secured credit facility, strategically review assets
By Jennifer Lanning Drey
Portland, Ore., March 11 - Casella Waste Systems Inc. is looking to refinance its $525 million senior secured credit facility by May 2009 through a revolving credit facility and bond issuance, according to slides accompanying a presentation given by company chief executive officer John Casella Wednesday at the Raymond James Institutional Investors Conference in Orlando, Fla.
In doing so, Casella expects to downsize the facility by $75 million to $450 million, according to the slides.
The facility matures in April 2010.
Total availability under the credit facility was $142.3 million at Jan. 31.
In addition to looking to refinance its senior secured credit facility, Casella's top priorities also include increasing cash flow generation and carrying out a strategic asset review, according to the presentation.
Potential levers to improve cash flow generation include increased pricing, improved cost controls and operating efficiencies and better management of capital expenditures and working capital.
Regarding a strategic review, Casella is looking to use the process to improve returns and operating performance as well as to reduce absolute debt and leverage ratios, according to the presentation.
As part of that strategy, the company will review cash flows by market to determine if there are any performing or under-performing assets that could create more shareholder value through a sale.
As part of a similar analysis, Maine Energy was identified as an asset that could yield more value through a sale, according to the slides.
Casella is a Rutland, Vt., waste services company.
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