Capital Environmental Resource Inc., through its wholly owned subsidiary, Waste Services, Inc., completed an about $374 million financing consisting of a new credit facility, an offering of senior subordinated notes and a private placement of common stock with warrants to purchase common stock. The net proceeds of the financing will be used to repay the company's existing senior credit facility, to complete the previously announced acquisition of Florida Recycling Services and to finance the purchase of the remaining assets of Allied Waste in Northern and Central Florida that are subject to final consent.
About $98.5 million of the net proceeds from these financings are being used to complete the acquisition of FRS. The operations of FRS are based in Central Florida, primarily servicing Orlando, Daytona, Fort Myers and Tampa areas. When combined with the recently acquired collection operations of Allied Waste in Central and Northern Florida, Capital's Florida operations will consist of 12 collection companies, 3 landfills, 4 transfer/processing facilities and 7 recycling facilities with approximately 550 vehicles, servicing approximately 31,000 commercial and 500,000 residential customers.
David Sutherland-Yoest, chairman and CEO, stated: "We are pleased to complete the acquisition of Florida Recycling Services as it will greatly expand our collection operations in Central Florida and provide significant new internalized waste volumes into our JED Landfill. The financings that have been completed provide the company with a new capital structure with significantly more flexibility and liquidity to continue to pursue our growth plans."