Nov 8, 2012 - US waste-to-energy firm Covanta Holding Corp (NYSE:CVA) on Wednesday announced the pricing of new tax-exempt bonds worth a total USD 335 million (EUR 262m).
The closing of the issue is scheduled for later in November. The company will use the funds raised for the refinancing of existing tax-exempt project debt at three facilities as well as for specific capital expenditures in Massachusetts.
The bond offering extends the refinanced debt's weighted average life to more than 27 years from less than three years currently, while also cutting average interest rates by more than 50 basis points. The transaction also releases more than USD 30 million of cash from restricted funds and frees up around USD 250 million of cash flow over the coming five years.
The lead manager for the bond issues is US-based Bank of America Merrill Lynch.