Covanta Holdings closed two new $1.3 billion credit facilities: a $900 million revolving credit facility and a $400 million term loan. The refinancing is an increase of $100 million over its previous facilities.
According to a related 8-K filing, Bank of America served as administrative agent, collateral agent and issuing bank for the transaction. Merrill Lynch, JPMorgn Chase, Credit Agricole Corporate and Investment Bank, Citizens Bank, MUFG and Sumitomo Mitsui were joint lead arrangers. TD Bank, Capital One, CoBank and Compass were co-documentation agents.
A portion of the new term loan was used to reduce outstanding borrowings under the revolver. Initial pricing on the new credit facilities was LIBOR plus 2.00%. All other material provisions, including covenants, were substantially unchanged.
“We appreciate the continued support of our banking partners and their recognition of the inherent creditworthiness of Covanta’s assets and highly contracted business model,” Bradford J. Helgeson, Covanta’s CFO, said. “This refinancing expands our credit capacity, reduces the cost of our revolver and further extends our debt maturity profile, as we now have no material debt maturities until 2022.”
Covanta provides sustainable waste and energy solutions.