Pittsburgh-based Liberty Tire Recycling Holdco LLC and its subsidiaries have completed the refinancing of its existing term loan and exchange offer relating to its 11 percent second lien secured notes due 2021.
The transactions substantially deleverage the company’s balance sheet, reduce interest expense, extend the maturity of its term loan and notes, and better position Liberty Tire to capitalize on growth opportunities, according to the company.
As part of the transactions, Carlyle Strategic Partners IV L.P., an investment fund managed by The Carlyle Group, became Liberty Tire’s majority equity sponsor and is partnering with Liberty to provide additional strategic resources to support its continued success.
Liberty says the transactions were completed after a successful privately negotiated exchange offer, with holders of 99 percent of the company’s second lien secured notes and more than 85 percent of the company’s common equity participating in the exchange.
“With the transactions complete, Liberty can further execute on its strategic growth plan while continuing to provide industry-leading service to our valued customers,” says Thomas Womble, CEO of Liberty Tire. “In 2018, we have our sights set on growth and continuing to be the premier provider of tire recycling services in North America.”
Ron Carlson, chief financial officer, adds, “These completed transactions not only strengthen Liberty’s balance sheet, they also provide flexibility to capitalize on new market opportunities with a focus on growing the business.”
Liberty Tire Recycling offers tire recycling services in North America. By recycling more than 146 million tires annually, Liberty Tire reclaims about 1.7 billion pounds of rubber for products. The recycled rubber produced by Liberty Tire is used as crumb rubber and industrial feedstock for molded products; as tire-derived fuel for industrial kilns, mills and power plants; and as rubber mulch for landscaping and playgrounds. The company maintains a North American network of processing plants, and comprehensive door-to-door collection services.