Bank of America has closed a five-year, $350 million revolver for Casella Waste Systems that repays the company's previous institutional debt and sets the table for future acquisitions. "We are growing the company's EBITDA 8-10% a year through a combination of internal and organic growth as well as external growth, that's our target," said Richard Norris, cfo. He said the company has embarked on an acquisition phase, but it has no immediate targets in its sights. It had about $94 million of EBITDA last year.
The old facility consisted of a $175 million revolver and a term loan "B" that had $147 million outstanding. Norris said the new facility provides the company with increased covenant flexibility and better pricing. The new revolver is currently priced at LIBOR plus 2%. The pricing is set on a debt-to-EBITDA grid and is currently about 75 basis points lower than pricing on the previous facility. "The bank market is very hot and it's a good time to do it," Norris said of the decision. The original banking relationship began with Fleet Bank and continued through Bank of America.