Covanta greenshoe exercised, lifts 3.25% convertibles to $460 million

By Devika Patel

Knoxville, Tenn., June 15 - Underwriters for Covanta Holding Corp.'s offering of 3.25% five-year convertible senior notes exercised their over-allotment option in full for $60 million more of the notes, increasing the size of the issue to $460 million, the company reported Monday.

As previously reported, the company sold the notes at par on May 18 in a Rule 144A offering via joint bookrunners Barclays Capital Inc., J.P. Morgan Securities Inc. and Citigroup Global Markets Inc.

The notes have a conversion premium of 22.5% and a conversion ratio of 53.9185, which equals a conversion price of $18.55.

There are no puts.

Proceeds will be used for working capital and general corporate purposes, which may include funding a portion of the construction cost of a 1,700 metric tons per day energy-from-waste facility in Dublin, Ireland, other capital expenditures, potential permitted investments or acquisitions.

Covanta is a Fairfield, N.J.-based waste disposal, energy and specialty services company.

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