NEW YORK, March 15, 2001 Covanta Energy Corporation (NYSE: COV) today announced that it has closed a master credit facility with its credit providers. Bank of America, N.A. and Deutsche Bank AG, New York Branch, are the co-agents of the facility.
As announced last week, the Company, formerly known as Ogden Corporation, has changed its corporate name to Covanta Energy Corporation, effective yesterday. The Company’s new ticker symbol on the New York Stock Exchange is “COV”.
“We are pleased to have reached agreement with our lenders on a master credit facility. This facility is an important step forward and provides Covanta Energy with the financial flexibility to complete our restructuring efforts, maintain our current energy portfolio and continue to grow our energy business,” said Scott G. Mackin, President and Chief Executive Officer of Covanta Energy Corporation. “Following the completion of our non-core asset sales process, we expect to replace this facility with one structured to support Covanta Energy’s long-term growth plans as a pure play energy company.”
The new facility, which matures May 31, 2002, is secured and includes a revolving credit facility of approximately $146 million and coordinates the administration of the company’s existing credit facilities. This master facility provides for continued investment in existing and new energy projects, which could approximate up to $100 million in 2001. These investments include continued funding for projects under construction, the Three Mountain Power Project currently being permitted in California, other plant-related expenditures and funding for additional projects currently under evaluation.
Covanta Energy’s ability to make investments in new energy projects is subject to certain conditions, including meeting minimum cashflow requirements, which includes the sale of non-core assets. Under the terms of the agreement, Covanta Energy repaid approximately $146 million of outstanding indebtedness, which is the amount that has been on its balance sheet under the heading “Restricted Cash-Intended to Repay Debt” on the closing date of the master facility.
The company does not expect the completion of the facility to affect its previously announced projection of $115 million in recurring base earnings before interest and taxes (EBIT) for 2001.
Covanta Energy Corporation is an internationally recognized developer, owner and operator of independent power projects and related infrastructure. The company’s independent power business develops, structures, owns, operates and maintains projects that generate power for sale to utilities and industrial users worldwide. Its waste-to-energy facilities convert municipal solid waste into energy for numerous communities, predominantly in the United States.
The company also offers single-source design/build/operate capabilities for water and wastewater treatment infrastructures. Additional information about Covanta Energy can be obtained via the Internet at www.covantaenergy.com.