American Zinc Recycling Announces New $120 Million Term Loan Facility

PITTSBURGH--(BUSINESS WIRE)--American Zinc Recycling Corp. (“AZR”) today announced that it has secured a new senior secured term loan credit facility provided by Blue Torch Finance LLC (“Blue Torch”).

“We are pleased to announce the completion of this transaction, which accomplishes a number of important objectives, including strengthening our liquidity, enhancing our financial flexibility and extending the duration of our debt,” remarked Steve Bishop, Executive Vice President and Chief Financial Officer of AZR. “This refinancing positions us exceptionally well to service our steel industry customers as we complete our transformation to a full-cycle, vertically integrated Zinc recycler with the ramp up of our American Zinc Products (AZP) plant in Rutherford County, North Carolina. We emerge from this transaction in a robust commodity price environment with a strong hedging profile that eliminates nearly all of our commodity risk through 2022.”

The Blue Torch loan is secured by a first lien on all the assets of AZR and its subsidiaries and matures in 2024. The Company was advised on the transaction by Ducera Securities LLC and by Akin Gump Strauss Hauer & Feld LLP. Blue Torch was advised on the transaction by Dechert LLP.

“We are happy to have forged a strong relationship with Blue Torch and appreciate the confidence that they have shown in AZR,” commented Joel Hawthorne, President and CEO of American Zinc Recycling Corp. “This transaction comes at an exciting time for the Company as we recently announced the one- year anniversary of bringing AZP on-line. Today we are producing Specialty High Grade (SHG) zinc, providing a mission critical service to our electric arc furnace customers by recycling a hazardous material in an environmentally friendly way and returning a highly valuable end-product to those same customers as well as many other end users. This financing provides us the runway to execute on our strategic vision and create tremendous value for our stakeholders.”

About American Zinc Recycling:

American Zinc Recycling LLC is the leading provider of environmental services to the U.S. steel industry. Headquartered in Pittsburgh, Pa., American Zinc Recycling LLC through its operating subsidiaries employs approximately 700 people and has six state-of-the-art facilities throughout the U.S. Visit azr.com for more information. Its subsidiary American Zinc Recycling Corp. takes zinc-bearing steel mill dust, a hazardous waste that would otherwise be disposed of in landfills, and recycles it using their Waelz kiln technology into Waelz Oxide (WOX), a zinc-based feed that it uses to produce zinc metal at the Rutherford County facility. Coupled with the work of subsidiary INMETCO, a leading recycler of stainless steel dust and household batteries, AZR is the largest hazardous waste recycler in the United States.

The information in this notice contains forward-looking statements, including statements about operational developments and future operating levels and production rates. These statements are based on current assumptions, estimates and information, are not guarantees of future performance, and are subject to certain risks, trends and uncertainties. Our actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking statements. We can give no assurances that any of the events anticipated by the forward-looking statements will occur or, if any of them do, what impact they will have on our results of operations and financial condition. We undertake no obligation to revise or update this press release to reflect events or circumstances after the date hereof.