Liberty Tire Recycling Completes Financial Restructuring

PITTSBURGH, April 7, 2015 /PRNewswire/ -- 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 $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 for $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."

About Liberty Tire Recycling

Liberty Tire Recycling is the premier provider of tire recycling services in North America. By recycling more than 141 million tires annually, Liberty Tire reclaims about 1.59 billion pounds of rubber for innovative, eco-friendly products. The recycled rubber produced by Liberty Tire 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. Liberty Tire Recycling is headquartered in Pittsburgh, Pa. For more information, please visit www.libertytire.com.

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SOURCE Liberty Tire Recycling