S&P assigns B+ to Casella Waste loan

S&P said it assigned its B+ issue-level rating and 2 recovery rating to Casella Waste Systems Inc.'s proposed $500 million senior secured credit facility.

The proposed senior secured credit facility will consist of a $150 million revolving credit facility and a $350 million term loan B. The 2 recovery rating indicates an expectation for substantial (70%-90%; upper half of the range) recovery in the event of a payment default.

At the same time, S&P lowered its issue-level rating on the company's senior unsecured industrial revenue bonds to CCC+ from BB- and revised the recovery rating on the bonds to 6 from 1. The 6 recovery rating indicates an expectation for negligible (0%-10%) recovery in the event of a payment default.

All of our other ratings on Casella Waste Systems remain unchanged.

S&P said the company is pursuing a $500 million senior secured credit facility to refinance its existing $190 million asset-based lending facility ($61 million outstanding as of June 30, 2016) and senior unsecured subordinated notes ($346 million outstanding as of June 30). Following the refinancing, the company expects to have approximately $72 million of borrowings outstanding under its revolver.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.