Dive Brief:

• Covanta Holding Corp. expects to finance approximately $110 million worth of equipment for a New York City disposal agreement.
• The New Jersey-based waste management firm is looking to equipment-lease financing to cover the purchase due to lower interest costs compared to the high bond market. Transportation equipment would gobble up a large portion of the company’s capital. 
• Covanta has a 20 year deal with New York City’s Department of Sanitation to haul and discard up to 800,000 tons of municipal solid waste every year. 

Dive Insight:

In addition to the lucrative contract with the city of New York, in June the company signed a waste deal with Boston, MA. Around 140,000 tons of municipal waste will be incinerated at a Covanta energy-from-waste plant. The energy could power up to 120,000 homes.