MORRISTOWN, N.J., Dec. 9, 2019 /PRNewswire/ -- Covanta Holding
Corporation (NYSE: CVA) ("Covanta" or the "Company"), a world
leader in sustainable waste management and renewable energy, today
announced that its subsidiary, Covanta Energy, LLC, has entered
into a $100 million trade receivable
securitization program. The program enables Covanta to raise
incremental, low cost funding by selling certain receivables on a
revolving basis to third-party financial institutions. The sales of
receivables under the program are expected to be accounted for as
cash flow from operations under US GAAP.
![Covanta Logo (PRNewsFoto/Covanta) Covanta Logo (PRNewsFoto/Covanta)](https://mma.prnewswire.com/media/77839/prn_covanta_logo.jpg)
"Utilizing this program offers us a very attractive and
efficient mechanism to diversify our sources of liquidity at a
lower cost than our corporate credit facilities," said Bradford Helgeson, Covanta's Chief Financial
Officer. "From a reporting standpoint, this transaction will reduce
balance sheet leverage in the near-term, as we used proceeds from
the initial sale of receivables to repay borrowings under our
revolver, and the resulting cash flow benefit was contemplated in
our outlook for 2019."
Crédit Agricole Corporate and Investment Bank is acting as
administrative agent for the program.
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 21
million tons of waste from municipalities and businesses into
clean, renewable electricity to power one million homes and recycle
over 600,000 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 (the "Securities Act"), Section 21E of the
Securities Exchange Act of 1934 (the "Exchange Act"), the Private
Securities Litigation Reform Act of 1995 (the "PSLRA") or in
releases made by the Securities and Exchange
Commission ("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 Holding
Corporation, its subsidiaries and joint ventures 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 facts are
forward-looking statements. For additional information see the
Cautionary Note Regarding Forward-Looking Statements in the
Company's 10-K, previously filed with the SEC.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/covanta-holding-corporation-initiates-trade-receivable-securitization-program-300971651.html
SOURCE Covanta