Moody's Ratings affirms Liberty Tire's B3 CFR and changes outlook to stable

LTR Intermediate Holdings, Inc.: Update to credit analysis following outlook change to stable - Credit Opinion – 2024/05/02 – US$ 250.00 – ...LTR has modest scale with a niche focus on scrap tire collection and recycling and high financial leverage driven by debt funded acquisitions and macro headwinds. These include higher interest rates that also constrain free cash flow. LTR is acquisitive given limited organic growth prospects in a fragmented landscape. Matching inbound/used tire collections with profitable and sustainable demand for its outbound/recycled end products remains a key challenge. Demand for these products is volatile and correlated with the economic cycle. We believe LTR will remain focused on initiatives around better pricing for inbound contracts at volume levels that drive profitability and increasing higher value outbound products. LTR has a good market position with a national footprint, long-standing customers and steady scrap-tire collection providing good revenue visibility at modest margins. Conversely, recycled outbound products rely on applications that generate lower margins. Efforts to increase higher...

LTR Intermediate Holdings, Inc.: Update to credit analysis following change in outlook to negative - Credit Opinion – 2023/04/24 – US$ 250.00 – ...LTR has modest scale, with a niche focus on scrap tire collection and recycling, and high financial leverage. Macro challenges, including cost inflation and rising interest rates, have weakened credit metrics and tightened liquidity. LTR is acquisitive given limited organic growth prospects in a fragmented landscape. Matching the company's inbound/used tire collections with profitable and sustainable demand for its outbound/recycled end products remains a key challenge. Demand for these products is volatile and correlated with the economic cycle. We believe LTR will remain focused on initiatives around better pricing for inbound contracts and at volume levels that drive profitability, and increasing higher value outbound products. LTR has a good market position with a national footprint, long-standing customers and steady scrap-tire collection that provides good revenue visibility at modest margins. Conversely, recycled outbound products rely on applications that generate lower margins....

Moody's affirms Liberty Tire's B3 CFR, changes outlook to negative - Rating Action – 2023/04/19 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

LTR Intermediate Holdings, Inc.: Update to credit analysis - Credit Opinion – 2022/04/22 – US$ 250.00 – ...Liberty Tire has modest scale, with a niche focus on scrap tire collection and recycling, and high financial leverage. Debt-to-EBITDA approaches 6x (at December 31,2021) pro forma for the January 2022 acquisition of Rubberecycle. Acquisitions will likely continue given the fragmented industry. A key challenge is matching the company's used tire (inbound) collections with profitable and sustainable demand for its (outbound) end products. Demand for these products (grade/used tire and processed tire), which compete with other low- priced products, is volatile and correlated with the economic cycle. We believe Liberty Tire will remain focused on initiatives around better pricing for inbound contracts and at volume levels that drive profitability. However, we expect margin headwinds from inflationary and competitive pressures. The company is well-positioned in its market, with a national footprint, long-standing customers and steady scrap-tire collection that provides good revenue visibility...

LTR Intermediate Holdings, Inc.: Liberty Tire's debt-financed acquisition of Rubberecycle is credit negative - Issuer Comment – 2022/01/11 – US$ 200.00 – ...We view LTR Intermediate Holdings, Inc.'s (dba Liberty Tire) announcement that it has entered into a definitive agreement to purchase Rubberecycle Corporation ("Rubberecycle"), a New Jersey based manufacturer of reusable rubber products, as credit negative. The transaction will be funded with a $150 million term loan add-on that will be fungible with the company's existing $410 million principal term loan due May 2028, increasing the size of the facility to $560 million. Proceeds from the incremental term loan will be used to fund the acquisition of Rubberecycle, repay $12 million outstanding on the company's revolving credit facility, add a modest amount of cash to the balance sheet, and fund transaction fees and expenses. We view the transaction as credit negative because it will increase Liberty Tire's financial leverage while presenting execution and integration risks. Pro forma Moody's adjusted debt- to-LTM EBITDA rises to roughly 6.1 times from 5.2 times at September 30, 2021. Although...

Moody's says Liberty Tire's debt-funded acquisition of Rubberecyle is credit negative, but ratings unaffected - Announcement – 2022/01/11 – US$ 180.00