PureCycle talks $200 million 7.5% seven-year green convertible notes at 90, up 50%

By Abigail W. Adams

Portland, Me., Aug. 21 – PureCycle Technologies Inc. plans to price $200 million of green convertible notes due 2030 after the market close on Monday with price talk for a discounted offer price of 90, a fixed coupon of 7.5% and a fixed initial conversion premium of 50%, according to a market source.

Oppenheimer & Co. Inc. is bookrunner for the Rule 144A offering, which carries a greenshoe of $30 million.

The notes will be accretive for the first four years and reach par on Aug. 15, 2027.

The notes are non-callable until Aug. 20, 2025 and then subject to a 130% hurdle.

The notes are putable at par on Aug. 15, 2027 or upon a fundamental change.

The notes will be settled in cash, shares or a combination of both at the company’s option.

Entities affiliated with Sylebra Capital Management have indicated an interest in purchasing $75 million of the notes upon maturity, according to a company news release.

Proceeds will be used to finance or refinance eligible green projects.

PureCycle is an Orlando, Fla.-based company specializing in a purification recycling technology that transforms No. 5 plastics into renewable energy.

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