Date: May 30, 2006
Source: PR Newswire
Covanta Holding Corporation (NYSE: CVA) ("Covanta") announced that its principal subsidiary, Covanta Energy Corporation ("Covanta Energy") completed the repricing of its First Lien Term Loan and Letter of Credit facilities on May 26, 2006, reducing interest expense on these facilities by 75 basis points. Covanta Energy also received commitments to increase its First Lien Term Loan by $140 million, the proceeds of which will be used to pay down its higher- priced Second Lien Term Loan facility. Covanta Energy expects that by the end of the second quarter of 2006, it will have reduced the Second Lien Term Loan facility from $400 million to $260 million, and will have paid a required call premium of 200 basis points. At the same time, the First Lien Term Loan facility will be increased from $229 million to $369 million. Covanta Energy's First Lien Letter of Credit and Revolving Credit facilities will remain unchanged at $320 million and $100 million respectively.
"We're pleased with this refinancing which will reduce our annual interest expense by approximately $8 million. In addition to improving our free cash flow, this transaction increases our flexibility to invest in growing the business," said Anthony Orlando, Covanta's Chief Executive Officer. "These improvements reflect our continuing predictable performance and positive industry outlook."
More information: www.covantaholding.com.