$Casella Waste Systems (CWST.US)$ shares were trading lower by 5.52% to $100.84 during Wednesday's session after the company announced a $450 million public offering of 4.5 million shares at $100 per share.
This offering will generate gross proceeds of approximately $450 million before accounting for underwriting discounts and offering-related expenses.
Additionally, Casella has granted the underwriters a 30-day option to purchase up to an additional 675,000 shares at the same price, minus the underwriting discounts. All the shares involved in the offering are being sold by Casella itself.
The offering is expected to close on or around September 19, subject to the fulfillment of customary closing conditions. Casella plans to use the net proceeds from this offering to fund its previously announced acquisitions of Royal Carting and Welsh Sanitation.
In addition to financing the acquisition, Casella intends to use a portion of the proceeds to repay borrowings under its revolving credit facility and for other general corporate purposes.
