Casella Waste Systems, a regional solid waste, recycling and resource management services company announced that, in connection with its previously announced potential debt refinancing, Bank of America Merrill Lynch has advised the Company that certain financial institutions and other investors have provided commitments to fund a new term loan B facility in the amount of $350 million (the "Term Loan B Facility") priced at 99.50% of the principal amount and a revolving line of credit facility in the amount of $160 million (the "Revolving Credit Facility" and, together with the Term Loan B Facility, the "Credit Facility"). 

Upon closing, the Term Loan B Facility is expected to have a seven-year term and will bear interest at a rate of LIBOR plus 3.00% per annum (with a 1.00% LIBOR floor), which will be reduced to a rate of LIBOR plus 2.75% upon the Company reaching a consolidated net leverage ratio of 3.75x or less.  The Revolving Credit Facility is expected to have a five-year term and will initially bear interest at a rate of LIBOR plus 3.00% per annum, which shall be adjusted from an applicable rate of 2.50% to 3.25% depending on the Company's consolidated net leverage ratio.        

The closing of the Credit Facility is expected to be completed on October 17, 2016, subject to the negotiation, execution and delivery of definitive loan documentation and customary closing conditions.  The Company intends to use the proceeds of the Credit Facility for the redemption of all of the Company's outstanding 7.75% Senior Subordinated Notes due 2019 (the "Senior Subordinated Notes"), the repayment in full of the Company's existing senior secured asset-based revolving credit and letter of credit facility, which matures on February 2020 (or November 2018 if the Senior Subordinated Notes are not refinanced by then), transaction related fees and expenses, working capital and other purposes.  

The Company expects the total cost of this transaction, including the call premium on the Senior Subordinated Notes to be redeemed and the discount on the new Term Loan B Facility, will be approximately $15 million.  Total annual interest savings is expected to be approximately $11 million.