-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SmwWXq0SnlvdHMX5F8kJ29OBtTk4vpfDW+J829rbMXOhXxnn07oRKpBwF97iEF25 d9rZis39DiHppgamH984Uw== 0000950137-05-005806.txt : 20050512 0000950137-05-005806.hdr.sgml : 20050512 20050511215547 ACCESSION NUMBER: 0000950137-05-005806 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050511 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050512 DATE AS OF CHANGE: 20050511 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DANIELSON HOLDING CORP CENTRAL INDEX KEY: 0000225648 STANDARD INDUSTRIAL CLASSIFICATION: COGENERATION SERVICES & SMALL POWER PRODUCERS [4991] IRS NUMBER: 956021257 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06732 FILM NUMBER: 05822285 BUSINESS ADDRESS: STREET 1: 40 LANE ROAD CITY: FAIRFIELD STATE: NJ ZIP: 07004 BUSINESS PHONE: 973-882-9000 MAIL ADDRESS: STREET 1: 40 LANE ROAD CITY: FAIRFIELD STATE: NJ ZIP: 07004 FORMER COMPANY: FORMER CONFORMED NAME: MISSION INSURANCE GROUP INC DATE OF NAME CHANGE: 19900826 FORMER COMPANY: FORMER CONFORMED NAME: MISSION EQUITIES CORP DATE OF NAME CHANGE: 19770921 8-K 1 c95253e8vk.htm CURRENT REPORT e8vk
 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 12, 2005

DANIELSON HOLDING CORPORATION

(Exact name of Registrant as Specified in Its Charter)
         
Delaware   1-6732   95-6021257
         
(State or Other Jurisdiction of
Incorporation)
  (Commission
File Number)
  (I.R.S. Employer
Identification No.)

40 Lane Road Fairfield, New Jersey            07004
(Address of principal executive offices)     (Zip Code)

(973) 882-9000

(Registrant’s telephone number, including area code)


(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

    ¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
    ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12(b))
 
    ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
    ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 


 

Item 7.01. Regulation FD Disclosure.

     Beginning on May 12, 2005, Credit Suisse First Boston and Goldman Sachs Credit Partners, L.P. will provide certain information concerning Danielson Holding Corporation (the “Company”) and its wholly-owned subsidiary, Covanta Energy Corporation (“Covanta”), to third-party prospective lenders in connection with a debt financing package necessary to finance the acquisition of American Ref-Fuel Holdings Corp., as well as to refinance the existing recourse debt of Covanta and provide additional liquidity for the Company. These materials contain certain previously undisclosed information which is attached hereto as Exhibit 99.1 and incorporated herein by reference. The information included in Exhibit 99.1 updates and supersedes similar information furnished in Exhibit 99.1 to the Company’s Form 8-K filed on March 7, 2005. This information includes certain non-GAAP financial information as identified in Exhibit 99.1.

     The information in this Form 8-K and Exhibit 99.1 is furnished pursuant to Item 7.01, “Regulation FD Disclosure,” and, except as shall be expressly set forth by specific reference in such filing, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

Item 9.01. Financial Statements and Exhibits.

(a)   Financial Statements of Business Acquired – Not Applicable
 
(b)   Pro Forma Financial Information – Not Applicable
 
(c)   Exhibits

       
  Exhibit No.   Exhibit

  99.1     Certain information provided to and by Goldman Sachs Credit Partners, L.P. and Credit Suisse First Boston

 


 

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: May 12, 2005

DANIELSON HOLDING CORPORATION
(Registrant)
         
     
By:   /s/ Timothy J. Simpson    
Name:   Timothy J. Simpson,   
Title:   Senior Vice President, General Counsel and Secretary   

 


 

DANIELSON HOLDING CORPORATION

EXHIBIT INDEX

       
  Exhibit No.   Exhibit

  99.1     Certain information provided to and by Goldman Sachs Credit Partners, L.P. and Credit Suisse First Boston

 

EX-99.1 2 c95253exv99w1.htm CERTAIN INFORMATION exv99w1
 

Exhibit 99.1

Certain information provided to and by
Goldman Sachs Credit Partners, L.P. and Credit Suisse First Boston

Capitalization of Covanta Energy Corporation and American Ref-Fuel Holdings Corp.
On a Pro Forma Basis ($mm)

                                         
Pro Forma 12/31/04 Cap Table  

    Debt     x2004 Adj.                     x2004 Adj.  
Capitalization   Amount 1     EBITDA 2     Cash Amount     Net Debt     EBITDA 2  

Project Level Restricted Cash
                  $ 419.0                  
Project Level Unrestricted Cash
                    53.9                  
ARC Non-recourse Project Debt
  $ 500.6                                  
Covanta Non-recourse Project Debt
    907.0                                  

Total Non-recourse Project Debt
  $ 1,407.6       2.7 x     $ 472.9     $ 934.75       1.8 x  

Other Recourse Project Debt
    251.2                                  
ARC 6.26% Sr Nts due 2015
    240.0                                  
MSW I 8.500% Sr Sec Nts due 2010
    200.0                                  
MSW II 7.375% Sr Sec Nts due 2010
    225.0                                  

Total Project and Intermediate Debt
  $ 2,323.8       4.5 x     $ 472.9     $ 1,850.95       3.6 x  

Covanta Corporate Level Unrestricted Cash
                    40.5                  
New First Lien Term Loan
    250.0                                  

Total First Priority Debt
  $ 2,573.8       5.0 x     $ 513.4     $ 2,060.45,6       4.0 x  

New Second Lien Term Loan / Notes
    425.0                                  

Total Debt
  $ 2,998.8       5.8 x     $ 513.4     $ 2,485.4       4.8 x  

Market Equity 3
    1,537.0                                  

 
Total Capitalization
  $ 4,535.8       8.8 x     $ 513.4                  

 
Selected Pro Forma Operating Assumptions and Credit Statistics
                                       

 
Adj. EBITDA/Interest
            2.3 x                          

 
(Adj. EBITDA-CapEx)/Interest
            2.1 x                          

 
Revenue
          $ 1,136                          

 
Adjusted EBITDA2
          $ 514                          

 
Capex4
          $ 53                          

 
Interest7
          $ 220                          

 
1. Par Amount
2. 2004 Adjusted EBITDA of $514mm based on $278mm for ARC LLC and $236mm for Covanta. Adjusted EBITDA is a non-GAAP financial measure, as discussed below.
3. Represents market cap as of 10-May-05 pro forma for a cash equity contribution of $400mm.
4. See Investments in Facilities for Covanta in Covanta’s public filings. See Additions of PP&E for ARC in ARC’s public filings.
5. Includes Project Level Restricted Cash of $419mm. $15mm of Corp Cash at CPIH included in Restricted Cash total.
6. Includes Corporate Unrestricted Cash of $41mm.
7. Includes all the interest at MSW Energy Holdings LLC and MSW Energy Holdings II LLC and pro forma interest expense for the new Covanta credit facilities.


 

Non-GAAP Financial Measures

     The following summarizes unaudited non-GAAP financial measures for Covanta Energy Corporation (“Covanta”). Certain items are included in the Historical Financials below that are not measured under U.S. generally accepted accounting principles (“GAAP”) and are not intended to supplant other information provided by Covanta in accordance with GAAP. Furthermore, these measures may not be comparable to those used by other companies. The following information should be read in conjunction with the Historical Financials set forth below. Adjusted EBITDA means, for any period, EBITDA plus additional items deducted from net income, as provided below, that have been made to EBITDA. Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net income as indicators of Covanta’s performance or any other measures of performance derived in accordance with GAAP. The presentation of Adjusted EBITDA is intended to enhance the usefulness of the financial information by providing a measure which management uses as an indicator of Covanta’s ability to meet prospective financial covenants. Adjusted EBITDA for each of the periods set forth in the Historical Financials below is reconciled to net income, which is believed to be the most directly comparable measure of GAAP.

Historical Financials of Covanta

                         
Covanta   Fiscal Year Ended December 31,  
($ in millions)   2002     2003     2004  
                   
 
Total Revenues
  $ 826     $ 790     $ 700  
 
           
Total Operating Costs and Expenses
  $ 879     $ 730     $ 613  
 
           
Net Income (Loss)
  $ (179 )   $ 44     $ 61  
 
           
Adjusted EBITDA
  $ 227     $ 266     $ 236  
 
           
 
Reconciliation to Adjusted EBITDA
                       
Net income (loss)
  $ (179 )   $ 44     $ 61  
Loss (gain) from discontinued operations, net of income taxes
    43       (79 )     0  
Cumulative effect of change in accounting principles, net of income taxes
    8       9       0  
 
           
Income (loss) from continuing operations before discontinued operations and change in accounting principles
  $ (128 )   $ (27 )   $ 61  
 
           
Depreciation and amortization
    77       72       69  
Net Interest on project debt
    86       77       46  
Interest on recourse debt
    44       40       41  
Interest income
    (2 )     (3 )     (3 )
Income taxes
    (1 )     (18 )     54  
Minority interests
    9       9       9  
Change in unbilled service receivables
    5       9       12  
Non-cash compensation
    0       0       1  
Reorganization items
    50       83       58  
Gain on cancellation of pre-petition debt
    0       0       (511 )
Fresh start adjustments
    0       0       399  
Loss on sale of businesses
    2       7       0  
Write-down of assets held for use1
    85       17       0  
Total Adjustments
  $ 355     $ 293     $ 175  
 
           
Adjusted EBITDA
  $ 227     $ 266     $ 236  
 
           
1.   “Write-down of assets held for use” includes charges relating to the following discrete events, each of which is related to a disposition of a non-core business in the Covanta bankruptcy or to entities that have declared bankruptcy or are being liquidated, and accordingly none are capable of recurrence:

  •   During 2002, relating to impairment of the contract value on Covanta’s Battan energy project in the Philippines, because a potential contract extension in 2004 was determined to be unlikely ($37.2 million). This contract was subsequently terminated in 2004 and the project’s assets are currently being sold for scrap.
 
  •   During 2002, relating to impairment of the contract value on Covanta’s Magellan energy project in the Philippines, because of material fuel price increases without corresponding increases in electricity tariffs ($41.7 million). This project subsequently filed for bankruptcy protection in the Philippines; its future is uncertain.
 
  •   During 2002, relating to impairment of the contract value on Covanta’s entertainment business in Ottawa, Canada which it disposed of as part of its bankruptcy in 2003 ($6.0 million).

 

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