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Covanta Holding
Corporation
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
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