Liberty Tire launches $410 million term B at Libor plus 425-450 bps

By Sara Rosenberg

New York, April 13 – Liberty Tire Recycling (LTR Intermediate Holdings Inc.) launched on Tuesday its $410 million seven-year covenant-lite green first-lien term loan B with price talk of Libor plus 425 basis points to 450 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

The company’s $470 million of senior secured credit facilities (B3/B-) also include a $60 million five-year revolver.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and BMO Capital Markets are the joint lead arrangers and bookrunners on the deal.

Commitments are due on April 22, the source added.

Proceeds will be used to finance the acquisition of the company by Energy Capital Partners from the Carlyle Group.

Closing is expected in the second quarter, subject to customary conditions.

Liberty Tire is a Pittsburgh-based provider of tire recycling services.

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