Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
On September 16, 2009 Waste Services, Inc. entered into a purchase agreement
for an additional $50.0 million aggregate principal of our 91/2% Senior
Subordinated Notes ("Subordinated Notes") due 2014. These Subordinated Notes
were issued on September 21, 2009 and mature on April 15, 2014. Interest on the
Subordinated Notes is payable semiannually commencing October 15, 2009. The
Subordinated Notes are redeemable, in whole or in part, at Waste Services'
option, on or after April 15, 2010, at a redemption price of 103.167% of the
principal amount, declining rateably in annual increments to par on or after
April 15, 2012, together with accrued interest to the redemption date. A copy of
the Purchase Agreement is attached as Exhibit 20.1 to this Form 8-K.
On September 21, 2009 we entered into a Registration Rights Agreement with
the initial purchasers of the Subordinated Notes in which we agreed to (i) file
a registration statement with respect to the Subordinated Notes within 120 days
of the closing date of the issuance of the notes, or the issuance date, pursuant
to which we will exchange the Subordinated Notes for registered notes of Waste
Services with terms identical to the Subordinated Notes; (ii) have such
registration statement declared effective within 210 days of the closing date,
(iii) maintain the effectiveness of such registration statement for minimum
periods specified in the agreement, and (iv) file a shelf registration statement
in the circumstances and within the time periods specified in the agreement. If
we do not comply with these obligations, we will be required to pay liquidated
damages, in cash, in an amount equal to $0.05 per week per $1,000 in principal
amount of the unregistered Subordinated Notes for each week that the default
continues, for the first 90-days following default. Thereafter, the amount of
liquidated damages will increase by an additional $0.05 per week per $1,000 in
principal amount of unregistered Subordinated Notes for each subsequent 90-day
period until all defaults have been cured, to a maximum of $0.50 per week per
$1,000 in principal amount of unregistered Subordinated Notes outstanding.
Liquidated damages, if any, are payable at the same time as interest payments
due under the Subordinated Notes. A copy of the Registration Rights Agreement is
attached as Exhibit 20.2 to this Form 8-K.
Section 8 - Other Events
Item 8.01 Other Events.
On September 21, 2009 Waste Services, Inc. issued a press release announcing
the completion of a private placement of an additional $50.0 million aggregate
principal amount of its 91/2% Senior Subordinated Notes due 2014. The press
release is attached as Exhibit 99.1 and is hereby incorporated by reference in
this Item 8.01 of this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
20.1 Form of Purchase Agreement dated as of September 16, 2009, among Waste
Services, Inc. and Barclays Capital Inc., as representative of the Initial
Purchasers.
20.2 Form of Registration Rights Agreement dated September 16, 2009, among
Waste Services, Inc. as Issuer, and Barclays Capital Inc., as
representative of the Initial Purchasers.
99.1 September 21, 2009 Press Release.