Casella sets $85 price on new stock shares

Rutland, Vermont-based Casella Waste Systems Inc. has announced it will offer more than 5.2 million shares of Class A common stock during a public offering scheduled to close on or around June 16 subject to customary closing conditions.

Casella Waste, a regional solid waste, recycling and resource management services company, says the stock offering is expected to result in gross proceeds of approximately $450 million, underwriting and offering expenses.

The company says it intends to proceeds from the offering to: finance a portion of its previously announced acquisitions of operations from Canada-based GFL Environmental Inc.; finance its just-announced acquisition of assets of Albany, New York-based Consolidated Waste Services LLC and its affiliates; repay borrowings from its revolving credit facility; and for general corporate purposes.

Casella Waste has granted the underwriters of the offering an option for a period of 30 days to purchase up to an additional 789,000 shares of common stock.

Financial firms involved in the offering include Florida-based Raymond James and St. Louis-based Stifel Financial acting as joint book-running managers, and UBS Investment Bank, with U.S. headquarters in New York, and Cleveland-based KeyBanc Capital Markets acting as passive book-runners for the offering.

A preliminary prospectus supplement relating to and describing the terms of the offering was filed with the Securities and Exchange Commission on June 12 and can be downloaded from Casella’s website. A final prospectus supplement relating to the offering also will be filed with the SEC, the firm says.