RUTLAND, Vt. - Casella Waste (NASDAQ:CWST) Systems, Inc. (NASDAQ: CWST), a company specializing in solid waste and recycling services, has set the price for its public offering of Class A common stock. The offering, consisting of 4.5 million shares, is priced at $100.00 per share, aiming to raise gross proceeds of approximately $450 million before underwriting discounts and expenses.
The underwriters have a 30-day option to purchase up to an additional 675,000 shares at the public offering price, minus the underwriting discounts. Casella confirmed that the offering would close around September 19, 2024, subject to standard closing conditions.
Proceeds from the offering are earmarked for specific uses. Casella intends to finance the acquisition of Royal Carting and Welsh Sanitation, repay borrowings under its revolving credit facility, and allocate funds for general corporate purposes.
Raymond James, J.P. Morgan, and Stifel are serving as joint book-running managers, with Goldman Sachs & Co. LLC and Wolfe | Nomura Alliance as passive book-runners. The shares are being offered under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC), and the offering is made through a written prospectus and prospectus supplement that are part of the registration statement.
Interested parties can access the preliminary prospectus supplement filed with the SEC on September 17, 2024, on the SEC's website. The final prospectus supplement, once filed, will also be available there.
Casella Waste Systems, headquartered in Vermont, provides a range of services including waste collection, disposal, recycling, and organics services, primarily in the eastern United States.
The press release includes forward-looking statements regarding the expected completion of the offering and the intended use of proceeds, which are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
This article is based on a press release statement and aims to present the facts of the offering without bias or promotional language.
In other recent news, Casella Waste Systems has embarked on a series of strategic moves, including a public offering of $400 million of its Class A common stock. Proceeds from this offering will be directed towards the acquisition of Royal Carting and Welsh Sanitation, which is expected to generate over $90 million in annualized revenues. Joint book-running managers for the offering include Raymond James, J.P. Morgan, and Stifel, with Goldman Sachs & Co. LLC and Wolfe | Nomura Alliance serving as passive book-runners.
The company also anticipates a $9 million charge in the third quarter of 2024 due to a landfill closure permit issued by the Massachusetts Department of Environmental Protection. Casella Waste Systems has reported a 30.2% increase in revenue for the second quarter of 2024, reaching $377.2 million, with adjusted EBITDA rising by 26.9% to $91.6 million. However, adjusted net income decreased to $12.5 million due to unexpected costs.
Analysts from Jefferies and Stifel have maintained a Buy rating on Casella Waste, with Jefferies setting a price target at $124.00 and Stifel at $117. Deutsche Bank, on the other hand, retains a Hold rating but increased the price target to $114. These ratings reflect the company's recent strategic investments and financial performance.
Finally, Casella Waste Systems has revised its revenue and EBITDA forecasts upwards by $40 million and $10 million, respectively, following two significant mergers and acquisitions in the mid-Atlantic region. Despite these revised forecasts, the company anticipates a decrease in solid waste volume of 1-2%, but expects solid waste price growth at the upper end of 5% to 6%. These are the recent developments for Casella Waste Systems.
InvestingPro Insights
As Casella Waste Systems, Inc. (NASDAQ: CWST) moves forward with its public offering of Class A common stock, investors are closely monitoring the company's financial health and market position. According to InvestingPro, Casella Waste Systems is trading near its 52-week high, with a price percentage of the high at 97.84%. This could indicate strong market confidence in the firm's prospects, reflective of the company's robust revenue growth, which stands at 27.76% over the last twelve months as of Q2 2024.
The company's commitment to growth is further underscored by its recent performance metrics. Casella Waste Systems boasts a significant gross profit margin of 34.22% for the same period, demonstrating the efficiency of its operations. Additionally, the EBITDA growth of 31.21% is a testament to the company's ability to expand its earnings before interest, taxes, depreciation, and amortization—a key indicator of financial performance.
InvestingPro Tips suggest that while Casella Waste Systems operates with a moderate level of debt, it is trading at a high earnings multiple, with a P/E ratio of 184.15 for the last twelve months as of Q2 2024. This could imply that investors are willing to pay a premium for the company's earnings, possibly due to expectations of future growth. Moreover, the company has liquid assets that exceed its short-term obligations, which may provide additional confidence for those looking into the stock.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips on Casella Waste Systems. There are currently 15 more InvestingPro Tips available, which can provide deeper insights into the company's valuation, profitability, and stock performance trends. These tips can be accessed by visiting the InvestingPro platform for Casella Waste Systems at https://www.investing.com/pro/CWST.
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