Casella Waste Systems, a regional solid waste, recycling and resource management services company, entered into a $550 million credit facility with Bank of America as both administrative agent and swing line lender.

Merrill Lynch, Citizens Bank, JPMorgan Chase and Comerica Bank acted as joint lead arrangers and joint bookrunners on the transaction.

The credit facility provided a $350 million term loan A facility and an up to $200 million revolving credit facility, with a $60 million sublimit for letters of credit. The interest rate margin applicable to LIBOR borrowings was reduced, in the case of term loans, to 1.25% to 2.25% (from the current range of 2.75% to 3.00%) based on consolidated net leverage ratio, and in the case of the revolving loans, to a range of 1.25% to 2.25% (from the current range of 2.50% to 3.25%) based on consolidated net leverage ratio. The facility will mature on May 14, 2023 and replaced Casella’s prior $510 million credit facility.

Casella expects the total cost of this transaction to be approximately $4 million. The company expects initial total annual interest savings to be approximately $2 million.