Casella Waste Systems, Inc., a regional solid waste, recycling and resource management services company, announced that it has entered into a $550 million credit facility with Bank of America, N.A., as administrative agent and swing line lender, Merrill Lynch, Pierce Fener & Smith Incorporated, Citizens Bank, N.A., JPMorgan Chase Bank N.A. and Comerica Bank as joint lead arrangers and joint bookrunners, and certain other agents and lenders.

The credit facility provides for a term loan A facility in the amount of $350 million and a revolving credit facility in the principal amount of up to $200 million, with a $60 million sublimit for letters of credit.  The interest rate margin applicable to LIBOR borrowings has been reduced, in the case of term loans, to 1.25% to 2.25% (from the current range of 2.75% to 3.00%) based on consolidated net leverage ratio, and in the case of revolving loans, to a range of 1.25% to 2.25% (from the current range of 2.50% to 3.25%) based on consolidated net leverage ratio.  The credit facility matures on May 14, 2023 and replaces Casella’s prior $510 million credit facility.  Casella expects the total cost of this transaction will be approximately $4 million.  Total annual interest savings is expected to be approximately $2 million initially.