Casella Waste Systems (CWST) saw its stock price plummet by 5.12% in pre-market trading on Friday, signaling investor concern over the company's latest financial move. The significant drop comes as the regional solid waste, recycling, and resource management services company announced a major debt restructuring.

According to a company statement, Casella Waste Systems has successfully priced the remarketing of $29.0 million in Finance Authority of Maine Solid Waste Disposal Revenue Bonds. These bonds, originally issued in 2015 and 2018, are set for redemption and remarketing on August 1, 2025. The remarketed bonds, designated as Series 2015R-3, will carry a new interest rate of 5.000% per annum, effective from August 1, 2025, until July 31, 2035. Additionally, the company plans to redeem $1.0 million of the bonds with cash on hand.

The market's negative reaction to this news suggests that investors may be concerned about the impact of the higher interest rate on Casella's future financial performance. The 5% interest rate on the remarketed bonds could potentially increase the company's debt servicing costs, which might put pressure on its profitability and cash flows in the coming years. This development, combined with the current economic uncertainties, appears to have prompted a sell-off in Casella Waste Systems' stock, leading to the sharp decline in pre-market trading.