- PureCycle Technologies (PCT, Financial) raises approximately $27 million through bond sales.
- Bonds sold at a 12% discount to face value, indicating investor risk perception.
- Capital will support commercialization of recycling technology for polypropylene plastic waste.
PureCycle Technologies (Nasdaq:PCT) has announced the successful sale of Southern Ohio Port Authority Tax-Exempt Facility Revenue Bonds, totaling approximately $30 million in aggregate par value. These bonds were sold at $880 per $1,000 face value, generating roughly $27 million in gross proceeds.
The sale sees participation from investors, including the Duquesne Family Office, providing a significant vote of confidence. However, the 12% discount to par value suggests investors are demanding higher yields, reflecting their cautious stance on PureCycle's risk profile as it moves towards commercialization.
The proceeds from this transaction are earmarked for advancing PureCycle's patented polypropylene recycling technology. This unique process, licensed from The Procter & Gamble Company, transforms #5 plastic waste into the PureFiveâ„¢ resin, effectively removing impurities and enabling multiple recycling cycles.
In addition to the funds raised, PureCycle retains approximately $87 million in salable Series A1 Southern Ohio Port Authority Revenue Bonds, offering additional financing flexibility going forward. This strategic financial move is poised to bolster the company's efforts in bringing its revolutionary recycling solution to market.
