The new financing of the recent short-term lending of the tire recycling company in Pittsburg, Liberty Tire Recycling, is now finally complete; the new investment covers Liberty’s subsidiaries loans as well.

Additionally, the business has terminated the exchange offer, connected to Liberty Tire’s 11% second lien secured notes payable in 2021.

According to Liberty, an exchange offer, which was discussed in private, led to the completion of the transactions. No less than 85 percent of Liberty’s common equity and owners of 99 percent of the firm’s second lien secured notes, participated in the bargain.

Reduction of interest expenditure and significant deleverage of the company’s balance sheet are the consequences of the transactions, said the enterprise. In addition, they prolong the maturity of Liberty’s term loan and notes, and provide the corporation with better chances for capitalization on growth opportunities.

The new deal establishes that Carlyle Strategic Partners, The Carlyle Group’s investment fund, will take a role of the main equity patron of the Pittsburg-based recycling company. The fund is also providing extra strategic resources to Liberty to maintain its successful operation.

Thomas Womble, Liberty’s chief executive officer, said that the ended transactions allow the company to carry on execution of its expansion strategy. Moreover, it is still capable of delivering to its clients its good-quality services.

This year, the recycler hopes to develop itself and remain the leading business for service provision in the tire recycling industry of North America. Liberty’s balance sheet has not only been fortified with the fresh agreement, but this step has enabled the business to be flexible in capitalization on emerging market opportunities, which may result in its development.

Liberty Tire Recycling operates in North America. The tires processed annually by the recycler exceed 146 million tires per year, thus approximately 1.7 billion pounds of rubber for manufacturing are regained. The company manages a system of processing facilities based in North America, and helps to handle tire collection.

Raw material for molded merchandise and crumb rubber are some of the applications of the Liberty’s recycled product. It is also applied as tire-derived energy source for power facilities, and as rubber mulch for outdoor play areas construction.

Article: Recycling Today