Covanta Holding Corp. closed a $400 million offering of its 6% senior unsecured notes due Jan. 1, 2027, according to an Oct. 18 press release.
Interest on the notes is payable semiannually on Jan. 1 and July 1, beginning July 1, 2019. The company plans to use net proceeds, along with cash on hand and direct borrowings under Covanta Energy LLC's revolving credit facility, to redeem all of its 6.375% senior notes due 2022 on or around Nov. 2.
Pending such use, Covanta intends to use a portion of the net proceeds to repay up to $200 million of borrowings outstanding under Covanta Energy LLC's revolving credit facility and to invest the remaining net proceeds in short-term interest-bearing accounts, securities or similar investments.
J.P. Morgan, Bank of America Merrill Lynch, Citizens Capital Markets Inc., Credit Agricole CIB, MUFG and SMBC Nikko acted as joint book-running managers.