Waste Services announces $300 million refinancing

Waste Services, Inc., a multi-regional solid waste services company, announced that it has completed the refinancing of its term loan and revolving credit facilities with a new dual-currency credit facility totaling approximately US$300 million. The new credit facility consists of a US$39.9 million term loan, a C$132.1 million term loan and US$139.6 million in a dual-currency revolving credit line. The term loans and revolver mature in 2013 and bear interest at LIBOR plus 3.5% on United States borrowings and a comparable rate on Canadian borrowings. The facility has been provided by a consortium of nine commercial banks with Barclays Capital and Banc of America Securities LLC serving as joint lead arrangers and joint lead bookrunners.

Waste Services’ president and CEO, David Sutherland-Yoest, applauded the new facility. “Barclays Capital and Bank of America have done an outstanding job during a turbulent period in the capital markets to provide us with an attractive new credit facility. The success of this offering speaks volumes about the recession resistant nature of the waste industry in general.”

Waste Services’ CFO, Ed Johnson, commented that the new credit facility will almost immediately generate several significant benefits for the company. “This new facility replaces our old revolving credit line which was approaching maturity in April 2009. It also has allowed us to put a substantial portion of our debt into Canada, helping us offset our Canadian profits where we are a cash tax payer. In addition, the new agreement is structured with a smaller term loan portion and a larger revolving portion, enabling us to use our cash more efficiently by giving us the flexibility to pay down debt with our excess cash without compromising our liquidity. In summary, this new facility improves our financing structure, significantly extends our debt maturities and provides us with usable dry powder for the opportunities that we expect will present themselves.”