Liberty Tire finalizes $410 million term loan B at Libor plus 450 bps

By Sara Rosenberg

New York, April 23 – Liberty Tire Recycling (LTR Intermediate Holdings Inc.) set pricing on its $410 million seven-year covenant-lite green first-lien term loan B at Libor plus 450 basis points, the high end of the Libor plus 425 bps to 450 bps talk, and removed the leverage-based pricing step-down, according to a market source.

Also, some changes were made to documentation, the source said.

The term loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

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.

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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