Covanta to issue $125M in stock |
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Fri, 19 Jan 2007 16:21
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FAIRFIELD, N.J. (AFX) - Covanta Holding Corp., owner of waste disposal, energy services and specialty insurance units, said Friday it plans to issue $125 million in stock and refinance all of its energy unit's debt as part of a recapitalization plan.The move would reduce debt capital and replace it with an increase in equity capital, which improves liquidity.Covanta Energy Corp. will refinance its debt with a new $300 million revolving credit facility, a $320 million funded letter of credit and a $680 million first lien term loan facility.Covanta also plans to sell $325 million in convertible debt and repurchase outstanding Covanta Energy debt worth $612 million.The company expects the moves to cost about $38 million and to save about $39 million in interest expenses.Covanta shares added 2 cents to $21.68 in early trading on the New York Stock Exchange.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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