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more Covanta news ?2
16:30 03-Oct-18
Covanta has priced the $400M of 2027 bonds that it offered this morning at 6%.
So as expected, the company saves 3/8th of a percent, or $1.5M
per year and extends its maturity by 5 years.
On the heels of the just-mentioned bond offering, Covanta has filed an 8-K for a $50M non-cash impairment charge that it expects to record this quarter. The charge is related to the state of unspecified EfW facilities, which will probably not remain operable for as long as previously thought.
My best guess would be that this relates to the recently purchased facilities in Florida, where the price just seemed too good to be true. Although there's no telling how the market will react to this, at $50M non-cash, my assessment is that this takes the deal from ridiculously good to very good, and has no meaningful effect on my valuation of CVA shares. I'll be much more concerned with growth from new plants in the British Isles, where the most recent board addition seems an offsetting positive.