Liberty Tire Recycling launches $150M add-on green TLB; commitments due Jan. 20

Sole lead arranger Morgan Stanley has set price talk on the $150 million incremental green first-lien term loan for Liberty Tire Recycling LLC, according to sources. Commitments are due by 5 p.m. ET on Jan. 20.

The add-on term loan is offered at an issue price of 98.57 and will be fungible with the issuer's existing covenant-lite green TLB due May 2028 that is priced at L+450, with a 1% Libor floor. The 101 soft call protection will be reset for six months on the entire tranche. Pro forma for the add-on, the term loan will total $558 million.

At talk, yield to maturity is approximately 5.91%.

Proceeds from the deal will be used to fund the company's acquisition of Rubberecycle.

The issuer placed its existing green term loan B in April 2021 to back the buyout of the company by Energy Capital Partners. The loan totaled $410 million when it was initially placed.

S&P Global Ratings has upgraded its issuer and facility ratings to B from B- while maintaining its stable outlook and 3 recovery rating. Moody's has affirmed its corporate and facility ratings of B3, with a stable outlook. The rated entity is LTR Intermediate Holdings Inc.

Liberty Tire is a provider of tire recycling services in North America with a network of more than 25 processing plants.