Real Industry Inc., Sherman Oaks, California, has announced that its Real Alloy Holding Inc. subsidiary is restarting its used beverage container (UBC) recycling operation at its Morgantown, Kentucky, facility due to increased customer demand and to fulfill a new contract.
The company says it plans to restart its UBC recycling operation in October 2017.
The UBC recycling operation has been idle since December 2015. On an annualized basis, Real Alloy says it expects to process approximately 50,000 tons at the Morgantown facility, which represents more than 6 percent of Real Alloy North America’s total annual volume. Cleveland-based Real Alloy Holding is comprised of the Real Alloy North America and Real Alloy Europe units.
Terry Hogan, president of Real Alloy, says, “We are excited about restarting the UBC recycling operation at Morgantown. The restart will bring approximately 30 people back to work at the facility and will result in higher equipment utilization with the higher production levels. We are currently ramping up the equipment and expect to be delivering the targeted volumes by the beginning of October 2017.”
Real Industry Inc. also has announced that it has retained Jefferies LLC, a global investment banking firm headquartered in New York, to assist in refinancing Real Alloy’s $305 million of senior secured 10 percent notes coming due in January 2019.
Kyle Ross, president and CEO of Real Industry, says, “Over the past few weeks, our senior management team has engaged in preliminary discussions with current and prospective investors regarding a potential refinancing of our senior secured notes. The leveraged finance market is in a strong position, and the company has engaged a team at Jefferies, with whom we have a long-standing relationship, to lead this process.”