By a News Reporter-Staff News Editor at Energy Weekly News -- Covanta Holding Corporation, a Delaware corporation (NYSE: CVA) (the "Company" or "Covanta") announced the offering of $400.0 million aggregate principal amount of a new series of senior unsecured notes (the "Notes") in an underwritten public offering (the "Note Offering"). The coupon rate, maturity and other terms of the Notes will be determined at pricing. The Note Offering will be made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission on December 15, 2011.
The Company intends to use the net proceeds of the Note Offering, together with direct borrowings under Covanta Energy Corporation's revolving credit facility as well as additional proceeds it may raise in future debt financings, which may include the issuance of additional debt securities, for general corporate purposes, including to repay at maturity its 3.25% Cash Convertible Notes; however, the Company will have broad discretion in the application of the net proceeds it receives from the Note Offering and it may apply the net proceeds and any additional such proceeds for a variety of corporate purposes. Pending other uses, until the maturity date of the 3.25% Cash Convertible Notes on June 1, 2014, the Company intends to use the net proceeds of the Note Offering to repay amounts outstanding under Covanta Energy Corporation's revolving credit facility and hold the remaining net proceeds as cash or cash equivalents.
Barclays, BofA Merrill Lynch, Citigroup, J.P. Morgan, Morgan Stanley and RBS will act 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 Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, or by calling +1 (888) 604-5847.
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 preliminary prospectus supplement and the accompanying prospectus. 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.
Keywords for this news article include: Banking and Finance.
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