Covanta Holding Corporation, a world leader in sustainable waste management and renewable energy, announced that its subsidiary, Covanta Energy, LLC, has entered into a $100 million trade receivable securitization program. The program enables Covanta to raise incremental, low-cost funding by selling certain receivables on a revolving basis to third-party financial institutions. The sales of receivables under the program are expected to be accounted for as cash flow from operations under U.S. GAAP.

"Utilizing this program offers us a very attractive and efficient mechanism to diversify our sources of liquidity at a lower cost than our corporate credit facilities," said Bradford Helgeson, Covanta's chief financial officer, in a statement. "From a reporting standpoint, this transaction will reduce balance sheet leverage in the near term, as we used proceeds from the initial sale of receivables to repay borrowings under our revolver, and the resulting cash flow benefit was contemplated in our outlook for 2019."

Crédit Agricole Corporate and Investment Bank is acting as administrative agent for the program.