Covanta Prices Private Offer Of $400M In Notes

FAIRFIELD, N.J. (AP) — Covanta Holding Corp. on Tuesday priced $400 million in senior notes due 2014.

The operator of facilities that turn waste into electricity said it also has granted the initial purchasers for the offering an option to purchase up to an additional $60 million in notes to cover overallotments.

The notes will pay interest semiannually on June 1 and Dec. 1 at a rate of 3.25 percent each year. They will mature on June 1, 2014.

The company plans to use net proceeds from the offering for working capital and general corporate purposes, which may include funding a portion of the construction cost of an energy-from-waste facility in Dublin, Ireland, and other capital expenditures, potential permitted investments or acquisitions.

Shares of Covanta fell 5 cents to $15.09 in midday trading.