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Covanta Energy's energy, water assets acquired by Danielson Holding
By Jeff Pines
Washington, March 10 - Covanta Energy Corp. said its energy and water assets were acquired by Danielson Holding Corp. for $30 million. Danielson now owns 100% of the Fairfield, N.J.-based company.
Danielson also arranged a new $118 million letter-of-credit facility secured by a second lien on Covanta's domestic assets. For its domestic operations, Covanta now has a $138 million first lien secured letter-of-credit facility and issued $205 million of senior secured notes accreting to $230 million by 2011 and up to $50 million of unsecured notes.
Covanta's international operations issued $95 million of secured three-year term notes to certain creditors.
These transactions enabled to company to emerge with $50 million in cash and available revolving credit, it said.
Three of Danielson's shareholders provided the financing for it to acquire Covanta. They are: SZ Investments LLC, Third Avenue Trust on behalf of Third Avenue Value Fund and D.E. Shaw Laminar Portfolios LLC. Laminar also arranged a $10 million secured revolver for Covanta's international operations.
Covanta's plan of reorganization was approved March 5. Its Chapter 11 case number was 02-40826.
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