Liberty Tire Recycling Holdco, LLC and its subsidiaries announced today that on March 5, 2015, the Company completed its financial restructuring, which de-levered the Company’s balance sheet and facilitated the infusion of new capital into the Company. 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.
As a result of the transaction, Liberty Tire has reduced its outstanding debt securities by US$50 million and significantly reduced its annual cash interest expense. The Company now has access to additional capital through loans provided by funds and accounts managed by Third Avenue Management LLC, Redwood Capital Management, LLC and Knighthead Capital Management, LLC, among others.
The transaction was implemented through a successful exchange offer launched on February 17, 2015, whereby almost 100% of Liberty Tire’s existing bondholders agreed to exchange their unsecured notes forUS$175 million of 11% second lien notes and equity in Liberty Tire.
“With our restructuring completed, we now have the foundation in place for Liberty to achieve strong and steady growth,” said Bill Fry, president and chief executive officer. “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, chief operating officer, said, “Our 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.” – PR Newswire