Liberty Tire Recycling Holdco LLC and its subsidiaries have completed the previously announced 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 the company to capitalize on attractive organic and inorganic growth opportunities.
As part of the transactions, Carlyle Strategic Partners IV L.P., an investment fund managed by The Carlyle Group, became the company’s majority equity sponsor and is partnering with Liberty to provide additional strategic resources to support the company’s continued success.
The transactions were consummated 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,” said Thomas Womble, CEO. “In 2018, we have our sights set on growth and continuing to be the premier provider of tire recycling services in North America.”
“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,” said Ron Carlson, chief financial officer.