Covanta refinances with two new loans totaling €446 million due 2032

By Sarah Lizee

Olympia, Wash., Dec. 18 – Covanta Holding Corp. completed a refinancing of its original capital structure of the Dublin project to extend maturities and to reduce costs, according to a press release.

On Dec. 14, the company raised a new €396 million senior loan due 2032 at a rate of 3.1% and a new €50 million second-lien junior loan due 2032 at a rate of 5.2%.

Proceeds were used to repay all existing senior and junior debt and the 13.5% convertible preferred instrument held by Blackrock.

The refinancing was made in connection to Covanta’s strategic partnership with the Green Investment Group Ltd., a subsidiary of Macquarie Group Ltd., to develop, fund and own energy-from-waste projects in Ireland and the United Kingdom.

As the initial step in the partnership, Green Investment Group will invest in the Dublin project, acquiring 50% ownership through the joint venture for €136 million, subject to working capital adjustments.

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

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