PITTSBURGH—Liberty Tire Recycling Holdco L.L.C. and Liberty Tire Recycling Finance Inc. announced an early redemption of all Liberty's outstanding 11 percent Senior Notes on Dec. 31.
The bonds were scheduled to be paid off by October 2016, Liberty announced in a recent news release.
In accordance with Liberty's original 2010 debt documents, Liberty paid a redemption price equal to $2.3 million, or 100 percent of the principal amount of the redeemed notes, plus accrued and unpaid interest, according to the news release.
“Given the company's strong financial position and performance, Liberty Tire Recycling was able to pay off the high-cost notes 10 months early by using cash on hand,” the company said.
“As a result, Liberty Tire Recycling has been released from its obligations with respect to such debt,” it said.
In March 2015, Liberty announced it had completed a financial restructuring that reduced the company's outstanding debt securities by $50 million and significantly reduced its annual cash interest expense.
On June 1, 2015, Scott W. Whitney became chief executive officer of Liberty. Whitney succeeded Bill Fry, who had overseen the company's financial restructuring.
In the news release, Liberty said it continues to evaluate the best use of its capital.
Liberty Tire Recycling processes more than 140 million tires annually, reclaiming more than 1.5 billion pounds of rubber for various end-use applications.