Covanta Acquires Site For $94M
Covanta Holding Corporation (NYSE: CVA) announced that it has purchased the Delaware Valley Resource Recovery Facility located in Chester, Pennsylvania from GE Energy Financial Services ("GE EFS") for $94 million in cash. The transaction includes the acquisition of approximately $122 million cash collateral trust and the assumption of $64 million in facility project debt principal. The purchase price was funded from cash on hand and available liquidity under the Company's revolving credit facility. The Delaware Valley facility, which Covanta operates and previously leased from GE EFS, has a processing capacity of approximately 2,700 tons per day, providing sustainable waste management services to Delaware County, PA and surrounding communities. Key transaction details include: *T -- Secures ownership and long-term control of a large capacity, well-run facility in an attractive location; -- The approximately $122 million cash collateral trust, which will be reflected as restricted cash on Covanta's balance sheet, will be utilized through 2019 to service project debt and to make cash distributions to the Company; -- Immediately accretive to Adjusted EBITDA, Free Cash Flow, and Adjusted EPS. *T
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.