Casella Waste Systems gets enough tenders, consents to amend 11% notes

By Susanna Moon

Chicago, Oct. 9 - Casella Waste Systems, Inc. said investors tendered $107,318,000, or 59.6%, of its $180 million outstanding 11% senior second-lien notes due 2014 by 5 p.m. ET on Oct. 5, the early tender date.

Casella said it received enough consents to amend the notes to remove substantially all of the restrictive covenants and some events of default.

In connection with the initial payment, the company entered into a supplemental indenture effecting these amendments, according to a company press release.

All of the notes that remain outstanding after the offer will be redeemed on Nov. 8 at a price of $1,055 per $1,000 of notes plus accrued interest up to but excluding the redemption date.

The tender offer will continue to run until 11:59 p.m. ET on Oct. 22. The offer began on Sept. 24. Tendered notes may no longer be withdrawn.

Holders who tendered their notes by the early tender date will receive the total payment of $1,060 per $1,000 principal amount of notes. This amount includes an early tender payment of $30 per $1,000 of notes.

Those who tender their notes after the early tender date will receive the tender offer payment of $1,030 per $1,000 of notes.

The company will also pay accrued interest to the payment date.

Holders may not tender their notes without delivering consents or deliver their consents without tendering notes.

The offer is conditioned on obtaining the required consents to amend the notes, the execution of a supplemental indenture and the completion of financing with proceeds of at least $200 million.

Casella priced a $40 million public offering of stock with a $6 million greenshoe on Sept. 28 and a downsized $125 million add-on to its 7¾% notes due Feb. 15, 2019 at 98.51 to yield 8.051% on Sept. 27, both of which were previously reported by Prospect News.

Bank of America Merrill Lynch (888 292-0070 or 980 387-3907) is the dealer manager and solicitation agent for the tender offer. Global Bondholder Services Corp. (866 924-2200 or 212 430-3774) is the information agent.

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

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