AP News

Casella announces notes, stock and tender offer

RUTLAND, Vt. (AP) — Casella Waste Systems Inc. said Monday that it is planning a stock offering, notes offering and a tender offer to redeem older notes.

The company, based in Rutland, Vt., provides waste, recycling and resource management services.

Casella launched a public offering of 10 million shares of its common stock. It also has included an option for underwriters to buy up to 1.5 million more shares for over-allotments.

BofA Merrill Lynch and JPMorgan are acting as the joint book-running managers for the offering. The company currently has nearly 27.4 million shares outstanding.

Casella also said that it plans to offer $135 million of 7.75 percent senior subordinated notes that are due in 2019. The notes are being offered in a private placement to institutional buyers. The company plans to use the proceeds to refinance its senior second lien notes due in 2014.

The tender offer is for all of its 11 percent senior second lien notes that are due in 2014. The company will pay $1,030 to holders of the notes for every $1,000 principle amount they hold. It will pay an additional fee to those who tender their notes early. The offer expires on Oct. 22.

The company's stock price fell 42 cents, or 7.9 percent, to close at $4.87 Monday. The stock has traded between $4.05 and $7.15 in the past 52 weeks.

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