MORRISTOWN, N.J., March 2, 2017 /PRNewswire/ -- Covanta
Holding Corporation (NYSE: CVA) (the "Company" or "Covanta"), today
announced the pricing of its underwritten registered public
offering of $400.0 million aggregate
principal amount of senior notes due 2025 (the "Note
Offering"). Interest on the notes is payable semiannually on
January 1 and July 1, beginning on July
1, 2017; the notes will mature on July 1, 2025. The notes will be issued at
100% of par value, with a coupon of 5.875%. The offering was
made pursuant to an effective shelf registration statement filed
with the Securities and Exchange Commission ("SEC") on October 24, 2014, subject to certain closing
conditions.
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The Company intends to use the net proceeds of the Note Offering
along with cash on hand and/or direct borrowings under Covanta
Energy, LLC's revolving credit facility to fund the redemption of
all of its 7.25% Senior Notes due 2020 on April 3, 2017 (the "Redemption Date") and to pay
transaction fees and expenses and accrued interest. In the period
between the closing of the Note Offering and the Redemption Date,
the Company intends to use a portion of the net proceeds of the
Note Offering to repay borrowings outstanding under Covanta Energy,
LLC's revolving credit facility in an amount up to $152 million and invest the remaining net
proceeds in short-term interest-bearing accounts, securities or
similar investments.
J.P. Morgan, BofA Merrill Lynch, Credit Agricole CIB, Citizens
Capital Markets, Inc. and MUFG acted as joint bookrunning managers
in the Note Offering. A copy of the prospectus supplement and
prospectus relating to these securities may be obtained, when
available, by contacting J.P. Morgan Securities LLC, c/o Broadridge
Financial Solutions, 1155 Long Island Avenue, Edgewood, New York, 11717, or by calling +1
(866) 803-9204.
This press release is for informational purposes only and is not
an offer to buy or sell or the solicitation of an offer to buy or
sell with respect to any securities. The Note Offering may be made
only by means of a prospectus supplement and the accompanying
prospectus filed with the U.S. Securities and Exchange Commission.
The prospectus is part of a shelf registration statement that has
become effective under the Securities Act of 1933, as amended. The
Note Offering is not being made in any jurisdiction in which the
making or acceptance thereof would not be in compliance with the
securities, blue sky or other laws of such jurisdiction or is
otherwise prohibited. In addition, this press release does not
constitute an offer to redeem or a solicitation of an offer to
redeem the existing notes.
About Covanta
Covanta is a world leader in providing sustainable waste and
energy solutions. Annually, Covanta's modern Energy-from-Waste
facilities safely convert approximately 20 million tons of waste
from municipalities and businesses into clean, renewable
electricity to power one million homes and recycle approximately
500,000 tons of metal. Through a vast network of treatment and
recycling facilities, Covanta also provides comprehensive
industrial material management services to companies seeking
solutions to some of today's most complex environmental challenges.
For more information, visit covanta.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may constitute
"forward-looking" statements as defined in Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"), Section
21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), the Private Securities Litigation Reform Act of
1995 (the "PSLRA") or in releases made by the SEC, all as may be
amended from time to time. Such forward-looking statements
involve known and unknown risks, uncertainties and other important
factors that could cause the actual results, performance or
achievements of Covanta and its subsidiaries, or industry results,
to differ materially from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Statements that are not historical fact are
forward-looking statements. Forward-looking statements can be
identified by, among other things, the use of forward-looking
language, such as the words "plan," "believe," "expect,"
"anticipate," "intend," "estimate," "project," "may," "will,"
"would," "could," "should," "seeks," or "scheduled to," or other
similar words, or the negative of these terms or other variations
of these terms or comparable language, or by discussion of strategy
or intentions. These cautionary statements are being made
pursuant to the Securities Act, the Exchange Act and the PSLRA with
the intention of obtaining the benefits of the "safe harbor"
provisions of such laws. Covanta cautions investors that any
forward-looking statements made by Covanta are not guarantees or
indicative of future performance. Important assumptions and
other important factors that could cause actual results to differ
materially from those forward-looking statements with respect to
Covanta include, but are not limited to, the risks and
uncertainties affecting Covanta's businesses described in periodic
securities filings by Covanta with the SEC. Important factors,
risks and uncertainties that could cause actual results to differ
materially from those forward-looking statements include, but are
not limited to: seasonal or long-term fluctuations in the prices of
energy, waste disposal, scrap metal and commodities; Covanta's
ability to renew or replace expiring contracts at comparable prices
and with other acceptable terms; adoption of new laws and
regulations in the United States
and abroad, including energy laws, environmental laws, tax laws,
labor laws and healthcare laws; failure to maintain historical
performance levels at Covanta's facilities and its ability to
retain the rights to operate facilities it does not own; Covanta's
ability to avoid adverse publicity or reputational damage relating
to its business; advances in technology; difficulties in the
operation of its facilities, including fuel supply and energy
delivery interruptions, failure to obtain regulatory approvals,
equipment failures, labor disputes and work stoppages, and weather
interference and catastrophic events; difficulties in the
financing, development and construction of new projects and
expansions, including increased construction costs and delays;
limits of insurance coverage; Covanta's ability to avoid defaults
under its long-term contracts; performance of third parties under
its contracts and such third parties' observance of laws and
regulations; concentration of suppliers and customers; geographic
concentration of facilities; increased competitiveness in the
energy and waste industries; changes in foreign currency exchange
rates; limitations imposed by Covanta's existing indebtedness and
its ability to perform its financial obligations and guarantees and
to refinance its existing indebtedness; exposure to counterparty
credit risk and instability of financial institutions in connection
with financing transactions; the scalability of its business;
restrictions in its certificate of incorporation and debt documents
regarding strategic alternatives; failures of disclosure controls
and procedures and internal controls over financial reporting;
Covanta's ability to attract and retain talented people; Covanta's
ability to utilize net operating loss carryforwards; general
economic conditions in the United
States and abroad, including the availability of credit and
debt financing; and other risks and uncertainties affecting
Covanta's businesses described in periodic securities filings by
Covanta with the SEC. Although Covanta believes that its
plans, intentions and expectations reflected in or suggested by
such forward-looking statements are reasonable, actual results
could differ materially from a projection or assumption in any
forward-looking statements. Covanta's future financial
condition and results of operations, as well as any forward-looking
statements, are subject to change and to inherent risks and
uncertainties. The forward-looking statements contained in this
press release are made only as of the date hereof and Covanta does
not have or undertake any obligation to update or revise any
forward-looking statements whether as a result of new information,
subsequent events or otherwise, unless otherwise required by
law.
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SOURCE Covanta Holding Corporation