PITTSBURGH (Jan. 13, 2016) — Liberty Tire Recycling Holdco L.L.C. and Liberty Tire Recycling Finance Inc. announced an early redemption of all Liberty's outstanding 11-percent Senior Notes Dec. 31.
The bonds were scheduled to be paid off by October 2016, Liberty said in a Jan. 7 press release.
In accordance with Liberty's original 2010 debt documents, the tire recycler paid a redemption price equal to $2.3 million, or 100 percent of the principal amount of the redeemed notes, plus accrued and unpaid interest, according to the press release.
“Given the company's strong financial position and performance, Liberty Tire Recycling was able to pay off the high-cost notes 10 months early by using cash on hand,” the Pittsburgh-based company said.
“As a result, Liberty Tire Recycling has been released from its obligations with respect to such debt.”
In March 2015, Liberty announced it had completed a financial restructuring that reduced the company's outstanding debt securities by $50 million and significantly reduced its annual cash interest expense.
On June 1, 2015, Scott W. Whitney became CEO of Liberty. He succeeded Bill Fry, who had overseen the company's financial restructuring.
In the Jan. 7 press release, Liberty said it continues to evaluate the best use of its capital.
Liberty Tire Recycling processes more than 140 million tires annually, reclaiming more than 1.5 billion pounds of rubber for various end-use applications.