This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Covanta Prices $400 Million in Notes

With even the White House talking about renewable energy in big, bold terms, it's no wonder that some companies are standing ready to benefit and steadying their legs in the wobbly economy -- with cash. Just see Covanta Holding (CVA - Get Report), which priced a $400 million private offering today.

After pricing the senior convertible notes, the New Jersey-based renewable energy company announced that it is expecting about $387.7 million in net proceeds from the offering. Covanta gave initial purchasers an option to buy an additional $60 million in notes to cover over-allotments.

Because of the private offering, the company cut its original 2009 earnings estimates to 65 cents to 80 cents a share, down from an earlier outlook of 75 cents to 90 cents.

In a statement, the company announced plans to use the cash for working capital and general corporate purposes. One purpose may be construction funding for a 1,700 metric tonne per day facility in Dublin, Ireland. The news blew up stock traffic, with Covanta volume nearing 14 million shares by closing, more than seven times the daily average.

The notes will mature on June 1, 2014 and will pay semi-annual interest of 3.24% per year. The notes may also convert to cash based on certain events before maturity. In the case of a cash conversion, Covanta said it's entered into hedging transactions with some affiliates of the initial purchasers to limit exposure. The company also entered into private warrant transactions.

Covanta specializes in creating energy from waste products. The company converts about 17 million tons of waste into more than 8 million megawatt hours of energy and 10 billion pounds of steam.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CVA $16.22 -3.70%
AAPL $93.50 -1.40%
FB $116.21 -0.45%
GOOG $691.70 0.10%
TSLA $240.96 -2.70%


Chart of I:DJI
DOW 17,701.94 -128.82 -0.72%
S&P 500 2,055.32 -20.49 -0.99%
NASDAQ 4,751.4360 -53.8550 -1.12%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs