October 4 (Renewables Now) - Waste-to-energy specialist Covanta Holding Corp (NYSE:CVA) expects to raise a total of USD 400 million (EUR 347.9m) from a public offering of senior notes due 2027.
Covanta announced on Wednesday the notes will have a coupon of 6%. Interest is payable semi-annually on January 1 and July 1, starting mid-2019.
The notes are due on January 1, 2027.
The company plans to use the proceeds, along with cash on hand and/or direct borrowings under Covanta Energy LLC's revolver, to fund the redemption on November 2 of all of its 6.375% senior notes due 2022. Covanta said it could use a portion of the proceeds to repay borrowings outstanding under the revolving credit facility in an amount up to USD 202 million, and invest the remainder in short-term interest-bearing accounts, securities or similar investments.
JP Morgan, BofA Merrill Lynch, Credit Agricole CIB, Citizens Capital Markets Inc, MUFG and SMBC Nikko served as joint bookrunning managers in the offering.
(EUR 1.0 = USD 1.15)