Bulletin: Covanta Holding Corp. Term Loan B Add-On Is Leverage Neutral

This report does not constitute a rating action. TORONTO (S&P Global Ratings) Jan. 29, 2024—S&P Global Ratings said today that Covanta Holding Corp.?s (B+/Stable/--) term loan B add-on, in conjunction with repricing, is neutral for the company?s leverage with no material impact on credit quality. The company will use the proceeds to pay down the revolver and transaction costs. As of Sept. 30, 2023, there was $250 million drawn on the revolver. The add-on is incremental to the term loans issued in June 2023 in relation to the Circon Environmental acquisition. Our ?B+? long-term issuer credit rating and stable outlook are unchanged. The ?BB? issue-level rating, with a ?1? recovery rating, on Covanta?s senior secured debt is unchanged; and the

...January 29, 2024 This report does not constitute a rating action. TORONTO (S&P Global Ratings) Jan. 29, 2024--S&P Global Ratings said today that Covanta Holding Corp.'s (B+/Stable/--) term loan B add-on, in conjunction with repricing, is neutral for the company's leverage with no material impact on credit quality. The company will use the proceeds to pay down the revolver and transaction costs. As of Sept. 30, 2023, there was $250 million drawn on the revolver. The add-on is incremental to the term loans issued in June 2023 in relation to the Circon Environmental acquisition. Our `B+' long-term issuer credit rating and stable outlook are unchanged. The `##' issue-level rating, with a `1' recovery rating, on Covanta's senior secured debt is unchanged; and the `B' issue-level rating, with a `5' recovery rating, on the company's senior unsecured debt is unchanged, although we revised the rounded estimate to 10% from 15%. For more information, see our most recent research update on Covanta,...

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