Covanta Holding to buy back Covanta Energy notes

By Angela McDaniels

Seattle, Jan. 19 - Covanta Holding Corp. plans to repurchase all of the outstanding notes of Covanta Energy Corp.'s intermediate subsidiaries, according to a company news release.

The plan applies to $612 million of outstanding notes.

The company also plans to provide funds to allow some of its subsidiaries to hold tender offers for their outstanding notes, including the 8½% senior secured notes due 2010 of MSW Energy Holdings LLC, the 7 3/8% senior secured notes due 2010 of MSW Energy Holdings II LLC and the 6.26% senior notes due 2015 of Covanta ARC LLC.

Covanta Holding will fund the tender offers with a portion of the proceeds from $1.3 billion of new bank loan facilities, a $125 million public offering of common stock and a $325 million public offering of convertible debentures, which are being undertaken as part of the company's comprehensive recapitalization plan.

The financings are expected to close in February.

Fairfield, N.J.-based Covanta Holding develops, owns and operates infrastructure for the conversion of energy from waste, waste disposal, renewable energy production and independent power production.

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