Covanta gets tenders for 84.67% of its $373.75 million 1% convertibles

By Susanna Moon

Chicago, Dec. 9 - Covanta Holding Corp. said investors tendered $316,461,000 principal amount, or 84.67%, of its $373.75 million 1% senior convertible debentures due 2027.

The offer expired at midnight ET on Dec. 8, and payment was expected to be made on Dec. 9. The offer began on Nov. 9.

After the purchase, $57,289,000 of the convertibles will remain outstanding.

Covanta said it will pay $990 for each $1,000 of convertibles, plus interest up to but excluding the payment date.

Funding for the offer will come from the sale of 7.25% notes due 2020.

The offer required raising at least $400 million from the sale of senior notes, and the company said on Nov. 16 that it priced $400 million of 10-year senior notes at par to yield 7.25%.

Barclays Capital Inc. (800 438-3242 or 212 528-7581) was the lead dealer manager, and Bank of America Merrill Lynch (888 292-0070 or 980 388-4603) was the co-dealer manager. D.F. King & Co., Inc. (800 967-7635 or 212 269-5550) was the information agent and depositary.

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

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