Covanta starts tender offer, seeks consents for 6% notes due 2027

By Rebecca Melvin

Concord, N.H., Jan. 4 – Covanta Holding Corp. started an offer to purchase for cash and consent solicitation for its $400 million outstanding 6% senior notes due 2027 (Cusip: 22282EAH5), according to a company announcement.

The offer will expire at 12:01 a.m. ET on Feb. 2 unless extended or earlier terminated by Covanta.

Holders who tender their notes and deliver consents by 5 p.m. ET on Jan. 18 will be eligible to receive a consent fee of $30 for each $1,000 principal amount of notes, for a total consideration of $1,031.25 per note.

The purchase price for notes tendered after the consent deadline will be $1,001.25.

The consent solicitation pertains to the elimination of substantially all of the restrictive covenants and some event of default provisions contained in the note’s indenture and shortening the minimum notice periods for the optional redemption of the notes by Covanta from 30 calendar days to two calendar days.

Approval of the proposed amendments requires consents from noteholders representing a majority of the notes.

Credit Suisse Securities (USA) LLC (800 820-1653, 212 325-7823) is the dealer manager and solicitation agent.

D.F. King & Co., Inc. (866 356-7814, 212 269-5550, covert@dfking.com) is the tender and information agent for the offer.

Covanta is a Morristown, N.J.-based provider of sustainable waste and energy solutions.

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