PITTSBURGH—Liberty Tire Recycling Holdco L.L.C. and its subsidiaries completed a financial restructuring on March 5.
The Pittsburgh-based company said the action “de-levered” its balance sheet and facilitated the infusion of new capital into the tire recycler. “With its new capital structure, Liberty Tire has a strong balance sheet and the flexibility and liquidity to continue to make significant capital investments and to capitalize on new market opportunities,” it said.
As a result of the transaction, Liberty Tire said it has reduced its outstanding debt securities by $50 million and significantly reduced its annual cash interest expense. It now has access to additional capital through loans provided by funds and accounts managed by Third Avenue Management L.L.C., Redwood Capital Management L.L.C. and Knighthead Capital Management L.L.C., among other firms.
The transaction was implemented through a successful exchange offer launched Feb. 17, 2015, whereby almost 100 percent of Liberty Tire's existing bondholders agreed to exchange their unsecured notes for $175 million of 11 percent second lien notes and equity in Liberty Tire, according to the company.
“With our restructuring completed, we now have the foundation in place for Liberty to achieve strong and steady growth,” said Bill Fry, president and CEO, in a statement. “We appreciate the service of our previous board of directors, and look forward to great things with our new equity holders and new board of directors.”
Thomas Womble, the company's chief operating officer, said the “completed restructuring provides us greater financial flexibility and stronger growth opportunities. We are excited to forge ahead and are thankful for the ongoing support of our valued partners, suppliers and customers.”
Liberty Tire Recycling said it recycles more than 141 million tires annually, reclaiming about 1.59 billion pounds of rubber that can be used for what it called “innovative, eco-friendly products.” The recycled rubber produced by Liberty 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.