Date: October 7, 2003
Source: News Room
IESI Corp. has acquired the stock of Seneca Meadows, Inc., the owner and operator of the Seneca Meadows Landfill, a facility located in upstate New York near Rochester. The landfill is permitted to accept an average of 6,000 tons of municipal solid waste per day, and its revenue for fiscal year 2002 was $47.7 million.
IESI Corp. completed a $400 million credit to support its acquisition of Seneca Meadows, which is the owner and operator of Seneca Meadows Landfill. The credit will also be used to repay the outstanding amount on the company's revolver, for future acquisitions and general corporate purposes, said Thomas Cowee, IESI's senior v.p. and cfo. IESI decided to add to its credit facility when the acquisition riming coincided with the need to renew the company's previous facility.
The new credit comprises a $200 million, five-year revolver and a $200 million, six-year term loan. The revolver is priced along a performance-based grid and currently the spread is LIBOR plus 3 1/4%. The term loan is priced at LIBOR plus 3%. The term loan is priced lower than the revolver due to the level of demand, which pushed the price down from talk of LIBOR plus 3 1/2%, Cowee explained. Previously, IESI had a $222.5 million revolver that was priced at LIBOR plus 3 1/4%. The company also had issued a $45 million "B" term loan, but the outstanding amount of $39.2 million was paid down using proceeds from a private offering of notes in June 2002.
Fleet Securities was the arranger for the facility and Fleet National Bank is the administrative agent. "Fleet is one of the premiere banks that covers the environmental industry," noted Cowee, explaining the company's relationship with the bank. LaSalle National Bank is the syndication agent. IESI also sold $47.5 million in new equity capital to help finance the purchase of Seneca Meadows.
PRESS RELEASE
October 10, 2003
IESI Corporation Purchases Seneca Meadows Landfill and Announces New Equity Issuance and Credit Facility
IESI Corporation (IESI) announced today that it has acquired the stock of Seneca Meadows, Inc., the owner and operator of the Seneca Meadows Landfill. The Seneca Meadows Landfill is a fully permitted municipal solid waste landfill located in the Finger Lakes Region of upstate New York, approximately 45 miles southeast of the City of Rochester, New York. Seneca Meadows Landfill is permitted to accept an average of 6,000 tons of municipal solid waste per day. Revenue at the landfill for fiscal year 2002 was $47.7 million.
IESI also announced today that it has completed the sale of $47.5 million of new equity capital, primarily from its existing shareholders and their affiliates and management. In addition, IESI plans to sell an additional $2.5 million to $7.5 million of equity. The new Series E Convertible Preferred Stock is the most senior class of IESI's equity and has substantially the same terms and conditions of the Company's outstanding Series D Preferred Stock. The new equity was used to help finance the purchase of Seneca Meadows. To date, IESI has raised over $240.0 million of funded equity capital.
IESI also announced today that is has finalized a refinancing of its senior secured credit facility. The expanded $400.0 million senior secured credit facility is made up of a $200.0 million revolver and a $200.0 million term loan. The revolver matures October 2008 and the term loan matures in October 2010. The $200.0 million term loan and borrowings of $33.7 million under the revolver were used to refinance IESI's existing credit facility, and to finance the purchase price and expenses related to the Seneca Meadows acquisition. Future borrowings under the revolver will be available to finance acquisitions, capital expenditures, working capital and other general corporate purposes. Fleet Securities, Inc. was the arranger for the facility, Fleet National Bank is the Administrative Agent and LaSalle National Bank Association is the Syndication Agent.
"Seneca Meadows Landfill is one of New York State's premier landfills, and we are extremely proud and excited to welcome them to our family of companies," said Mickey Flood, President and CEO of IESI. "The purchase of the landfill solidifies our Northeast Region and positions us for future expansion in the Northeast. I'd like to thank all our shareholders and lenders, who were again extremely supportive of our Company and this transaction."
"We made initial contact with the seller three years ago," said Larry McGee, Senior Vice President and Chief Development Officer. "We signed our definitive agreement in May 2003 and since then we have enjoyed getting to know the people at Seneca Meadows and the local communities. We expect the transition to IESI to be very smooth."
IESI is one of the leading regional, non-hazardous solid waste management companies in the United States and has grown rapidly through a combination of strategic acquisitions and internal growth. IESI provides collection, transfer, disposal and recycling services to 275 communities, including more than 535,000 residential customers and 54,000 commercial and industrial customers in nine states.
This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not historical facts, but only predictions and generally can be identified by use of statements that include phrases such as "believe," "expect," "anticipate," "intend," "plan," "foresee" or other words or phrases of similar import. Similarly, statements that describe the Company's objectives, plans or goals are also forward-looking statements. These forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated. The Company urges you to carefully consider the factors and related information set forth in the Company's filings with the Securities and Exchange Commission. The forward- looking statements contained herein are made only as of the date of this press release and the Company undertakes no obligation to publicly update the forward-looking statements to reflect new information, subsequent events or otherwise.
Web site: www.iesi.com/
For more information, contact:
Thomas J. Cowee
Senior VP and Chief Financial Officer of IESICorporation
817-632-4005, or tjcowee@iesi.com.
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