Casella Waste Systems Inc. (CWST) is making a significant move in the waste management industry. The company announced a $450 million public offering of 4.5 million shares at $100 per share, sending its stock down by 5.44% to $100.92 during Wednesday’s trading session.
This offering is designed to generate gross proceeds of approximately $450 million, before accounting for underwriting discounts and offering-related expenses. Casella has also granted underwriters a 30-day option to purchase up to an additional 675,000 shares at the same price, minus the underwriting discounts. Notably, 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’s strategic plan involves utilizing the net proceeds from this offering to fund its previously announced acquisitions of Royal Carting and Welsh Sanitation. Beyond these acquisitions, Casella intends to use a portion of the proceeds to repay borrowings under its revolving credit facility and for other general corporate purposes.
How to Buy CWST Stock
If you’re interested in investing in Casella Waste Systems, you can purchase shares through a brokerage account. Many platforms offer the ability to buy ‘fractional shares,’ allowing you to own portions of a stock without purchasing an entire share. For example, if you’re interested in investing in Casella Waste Systems but don’t want to invest the full $101.43 per share, you can purchase a fraction of a share through a brokerage account that offers this option.
Exploring Investment Options
If you’re looking to bet against the company, the process is more complex and involves accessing an options trading platform or a broker that allows you to ‘go short’ on a share of stock. This involves borrowing shares to sell, with the goal of profiting from a decline in the share price. You can also explore options such as buying a put option or selling a call option at a strike price above the current trading price, both of which allow you to profit from a decrease in the share price.
Remember, investing involves risk and it’s crucial to conduct thorough research before making any investment decisions.
