Bulletin: Covanta Holding Corp. Proposes $465 Million Add-On

NEW YORK (S&P Global Ratings) Jan. 4, 2022--S&P Global Ratings today said that Covanta Holding Corp.'s (B+/Positive/--) proposed add-on to its existing 2029 notes is credit neutral. The company will use proceeds from the proposed $465 million add-on to redeem its $400 million of 6% senior notes due 2027, to pay fees and expenses, and for general corporate purposes. The proposed add-on and refinancing will modestly reduce interest expense while minimally increasing total funded debt. Our 'B+' issuer credit rating and positive outlook on Covanta, our 'BB' issue-level rating on Covanta's proposed secured debt, and our 'B' issue-level rating on Covanta's existing and proposed unsecured debt are unchanged by the transaction. ISSUE RATINGS--RECOVERY ANALYSIS Key analytical factors We previously assigned

...NEW YORK (S&P Global Ratings) Jan. 4, 2022--S&P Global Ratings today said that Covanta Holding Corp.'s (B+/Positive/--) proposed add-on to its existing 2029 notes is credit neutral. The company will use proceeds from the proposed $465 million add-on to redeem its $400 million of 6% senior notes due 2027, to pay fees and expenses, and for general corporate purposes. The proposed add-on and refinancing will modestly reduce interest expense while minimally increasing total funded debt. Our 'B+' issuer credit rating and positive outlook on Covanta, our '##' issue-level rating on Covanta's proposed secured debt, and our 'B' issue-level rating on Covanta's existing and proposed unsecured debt are unchanged by the transaction. ISSUE RATINGS--RECOVERY ANALYSIS Key analytical factors - We previously assigned our '##' issue-level and '1' recovery ratings to Covanta's proposed senior secured credit facilities. The '1' recovery rating indicates our view that lenders could expect very high recovery...

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