Liberty Tire Recycling Begins Transactions to Strengthen Balance Sheet

PITTSBURGH, Nov. 30, 2017 /PRNewswire/ -- Liberty Tire Recycling Holdco, LLC and its subsidiaries ("Liberty" or "the Company") have entered into a privately negotiated agreement with holders of more than 96 percent of the Company's Second Lien Secured Notes and 80 percent of the Company's common equity designed to substantially deleverage the Company's balance sheet, reduce interest expense, and better position the Company to capitalize on attractive organic and inorganic growth opportunities (the "Transaction"). In connection with the Transaction, the Company expects that Carlyle Strategic Partners, an investment fund managed by The Carlyle Group, will become the Company's majority equity sponsor and will partner with Liberty to provide additional strategic resources to support the Company's continued success. The Transaction contemplates:

• A refinancing of the Company's existing Term Loan which will reduce interest expense and extend the maturity date.

• An exchange offer, launched yesterday, for all of the Company's Second Lien Senior Secured Notes, which the Company expects will substantially reduce the principal amount and interest rate, and extend the maturity of its notes.

"We believe these transactions will provide Liberty with increased financial flexibility to execute on our strategic growth plans and position the Company to continue to provide our customers with industry-leading service levels," said Thomas Womble, chief executive officer. "We greatly appreciate the continued support of our valued customers, suppliers, and partners who are critical to our success now and in the future.  I also want to thank our extraordinary employees, who have been vital to our success in continuing to be the premier provider of tire recycling services in North America. We look forward to enhancing our relationships and many more years of continued partnership and success with all our important stakeholders." 

Ron Carlson, chief financial officer, said: "We expect that these transactions will allow us to continue to make significant capital investments in our plants and equipment, capitalize on new market opportunities, negotiate better vendor terms, and significantly grow the business both organically and through acquisitions."

These transactions are subject to a number of terms and conditions and are expected to be completed by the end of the year, however there can be no assurances they will be completed or completed on the terms described in this release.

About Liberty Tire Recycling
Liberty Tire Recycling is the premier provider of tire recycling services in North America. By recycling more than 146 million tires annually, Liberty Tire reclaims about 1.7 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.

Forward Looking Statements 
This press release and other oral or written statements made by the Company or on its behalf contain forward-looking statements. All statements, other than statements of historical fact contained in this press release and other written or oral statements made by the Company or on its behalf, are forward-looking statements. We generally identify these statements by words or phrases such as "anticipate," "approximate," "believe," "continue," "estimate," "expect," "forecast," "intend," "foresee," "may," "plan," "project," "should," "will" and other similar words or phrases, or the negative thereof. These statements include, among others, expectations with respect to the Company's capital transaction, including its ability to successfully complete the exchange offer or refinance its senior credit facilities; its business plan and anticipated benefits of the capital restructuring; future levels of indebtedness and capital spending and product developments and new business opportunities. Although the forward-looking statements contained in this press release reflect the current beliefs of the Company's management based upon information currently available to management and upon assumptions that management believes to be reasonable, actual results may differ materially from those stated in or implied by these forward-looking statements. The Company cautions that it is impossible to predict actual results or outcomes or the effects of risks, uncertainties or other factors on anticipated results or outcomes and that, accordingly, one should not place undue reliance on these statements. These statements are subject to risks, uncertainties and other factors, including, but not limited to, the Company's ability to successfully complete its capital transaction in a timely manner or at all, the Company's ability to continue to grow its business and execute its growth strategy, conditions in the economy, the Company's ability to recruit and retain highly skilled employees, the outcome or impact of ongoing or future regulatory actions, the effect of domestic governmental laws, such as environmental laws and agency regulations, commodity price volatility, the Company's ability to successfully identify, acquire and integrate future acquisitions, risks relating to the Company's indebtedness and other risks and uncertainties. The foregoing factors are not exhaustive, and new factors may emerge or changes to the foregoing factors may occur that could impact the Company's business. Actual results and outcomes may differ materially from anticipated results or outcomes discussed in any forward-looking statements. Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to update or revise these statements in light of subsequent events or developments.

This press release does not constitute an offer to participate in the exchange offer referred to above, nor shall it constitute an offer to participate in any jurisdiction in which it is unlawful to make such an offer under applicable securities or blue sky laws.

Contact:   
Jeff Jones
412-642-7700
[email protected]

SOURCE Liberty Tire Recycling