Casella refinances could be good news for Biddeford
Casella Waste Systems is expected this week to wrap up a refinancing of its $500 million in debt, which will decrease pressure on the company to sell its downtown Biddeford incinerator to another company.
Vermont-based Casella has been in discussions with Biddeford officials about a price for the controversial downtown incinerator, a crucial step in the town's desire to buy and close the facility to enhance future economic development. But the company has also said financial difficulties could force it to sell the incinerator, known locally as MERC, to another company, according to the Portland Press Herald. The refinancing eases the pressure on Casella to sell the facility to another company, which Biddeford officials feared would complicate their acquisition of the facility. The discussions between the town and Casella were described as "generally positive" by one company official.
Last week, Casella said it floated $180 million in corporate bonds, and expects to announce this week that it has come to terms with a lender for a $177.5 million line of credit and a $130 million loan, all in its attempt to refinance $500 million in debt before the end of the year, according to the Press Herald. Auditors for the company had issued a warning about the company's ability to continue operating if it were unable to find new financing. A company spokesperson told the paper that Casella's ability to refinance is a sign of confidence from lenders and investors, even though the company's stock tumbled from a high of $14.49 a share late last summer to $2.04 on Thursday, the paper said.
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