CTBH Partners LLC Announces Successful Remarketing of $25.0 million of Solid Waste Industrial Revenue Bonds for Casella Waste...

CTBH Partners LLC (“CTBH”) is pleased to announce the closing of $25.0 million aggregate principal amount of tax-exempt solid waste industrial revenue bonds for its client, Casella Waste Systems, Inc. (“Casella”) (Nasdaq: CWST). As financial advisor to the borrower, CTBH represented Casella in the remarketing of its New York State Environmental Facilities Corporation (the “Issuer”) Solid Waste Disposal Revenue Bonds (Casella Waste Systems, Inc. Project) Series 2014 (the “Bonds”). The Bonds, rated “B” by S&P Global Ratings and “B2” by Moody’s Investor Service, were remarketed at an interest rate of 2.875% per annum on December 2, 2019 for 10 years. BofA Securities, Inc. served as the remarketing agent on the transaction.

The Bonds were originally issued on December 18, 2014 and have a final maturity date of December 1, 2044. The fixed term interest rate period under which the Bonds were previously issued expired. Accordingly, the Bonds were remarketed on December 2, 2019. The Bonds are payable solely from amounts received from Casella under the indenture and are not a general obligation of the Issuer, nor are they a debt or pledge of the faith and credit of the State of New York.

Overview of Private Activity Bonds

Since 1968, private companies and nonprofit organizations have been able to finance qualifying projects by borrowing the proceeds of tax-exempt private activity bonds (“PABs”) issued through a conduit issuer as an alternative to traditional corporate debt. PABs are municipal bonds issued by or on behalf of local or state governments for the purpose of providing special financing benefits for qualified private projects that serve a public purpose, including solid waste disposal facilities. Other qualifying activities under the Internal Revenue Code include airports, docks & wharves, sewage treatment facilities, local district heating, highway or surface freight transfer facilities, and qualified 501(c)(3) capital expenditures.

Solid waste PABs are sometimes also referred to as industrial revenue bonds (or “IRBs”). In the context of IRBs, the Internal Revenue Code defines solid waste disposal facilities as “any property or a portion thereof used for the collection, storage, treatment, utilization, processing, or final disposal of solid waste”. Recycling facilities can also qualify in many cases.

The benefits of PABs include (i) potentially significant interest rate saving due to the tax-exempt status of the bonds, (ii) potentially longer-term debt than otherwise available, (iii) access to an additional pool of investor capital, and (iv) flexible financing structures. However, to receive these benefits, the borrower needs to comply with various federal and state regulatory requirements that may result in smaller bond issuances and a more involved bond issuance process (with pre- and post-issuance compliance requirements) than traditional corporate debt. Nevertheless, the use of PABs is wide spread across multiple industries by publicly traded and privately held companies as well as nonprofit organizations.

Industry-wise, the issuance of tax-exempt PABs are most prevalent with (i) healthcare facilities, (ii) colleges and universities, (iii) electric utilities, (iv) oil & gas companies, (v) airlines, as well as (vi) environmental control companies. Collectively, organizations in these industries have approximately $400 billion in tax-exempt PABs outstanding.

About Casella Waste Systems

Casella Waste Systems, Inc., headquartered in Rutland, Vermont, provides solid waste management services consisting of collection, transfer, disposal, and recycling services in the northeastern United States.

About CTBH Partners

CTBH Partners LLC is a top-ranked independent financial advisory firm to the environmental sector specializing in tax-exempt debt offerings for companies with qualifying capital expenditures. CTBH is registered as a Municipal Advisor with the Municipal Securities Rulemaking Board and the U.S. Securities and Exchange Commission. CTBH does not engage in any form of underwriting, trading, marketing, or investing in securities.

Since inception, CTBH has provided its consulting services to borrowers on over $200 million of tax-exempt solid waste industrial revenue bonds across six states. For further information, visit the company’s website at https://ctbhpartners.com.

Transaction Contact:John RuthManaging [e-mail]

Media Contact:Abbie [e-mail]