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Circulus Announces $300 Million Structured Solution from Apollo Infrastructure

Circulus Announces $300 Million Structured Solution from Apollo Infrastructure

Transaction Positions Circulus for Continued Growth in LDPE Recycling

Underscores Apollo’s Commitment to Driving a More Sustainable Future

Circulus Holdings, PBLLC (“Circulus”), a producer of post-consumer resin (PCR) from recycled low-density polyethylene (LDPE), and Apollo (NYSE: APO) today announced that funds managed by Apollo affiliates (the “Apollo Funds”) have agreed to commit up to $300 million to an innovative structured solution in the form of a senior, secured loan to support the company’s ongoing development of recycling infrastructure. Circulus is a portfolio company of Ara Partners, a private equity firm specializing in industrial decarbonization investments.

Based in Houston, Circulus is an emerging leader in plastics recycling, utilizing proprietary technologies to transform olefin plastics into resins suitable for a variety of commercial and industrial applications. The company’s products look to support the circular economy with post-consumer resins suitable for applications such as plastic bags, shrink film, pouches, overwraps, and many more consumer-facing applications. Circulus currently has two plants producing PCR, with one additional facility coming online in the near term and two more in development.

See related article: Apollo Publishes 13th Annual ESG Report “Driving a More Sustainable Future”

Circulus’ platform offers compelling ESG benefits including:

  • an advanced approach to PCR production that focuses on under-recycled polymers to help divert plastic waste away from landfills, incinerators and oceans, while creating circular materials with a greatly reduced GHG emissions footprint;
  • operations that facilitate water conservation, with 85 percent of plant water being reused;
  • a commitment to minimize the carbon footprint of current and future facilities with the development of GHG emissions targets across the company’s operations; and
  • creation of green careers as the company continues to expand its footprint.

Craig Foster, Circulus CEO, said, “We are pleased to partner with Apollo to support Circulus’ continued growth as we execute on our expansion plans. Apollo’s substantial resources and industry expertise will be a significant value-add as we continue to solve challenges in the path to a circular economy.”

Apollo Partner Corinne Still said, “With a seasoned management team, first-mover advantage in the North American LPDE market, best-in-class manufacturing technology and strong industry tailwinds, Circulus is well positioned to execute on its growth plans. We look forward to leveraging our deep relationships and experience within the petrochemical industry to support the company’s continued expansion.”

Troy Thacker, a Managing Partner of Ara Partners, said, “We are thrilled to welcome Apollo as an additional financial partner for Circulus as the company continues its ambitious infrastructure buildout. We are very pleased by Circulus’ progress since we invested in the company and are excited about our continued collaboration with Craig Foster and the team.”

Geoff Strong, Partner and Co-Head of Infrastructure and Natural Resources at Apollo, added, “We are always looking for opportunities to invest behind sustainable companies working to build a cleaner economy, and this transaction is the latest example of our ability to provide innovative capital solutions alongside measurable environmental impact outcomes.”

The transaction underscores Apollo’s commitment to driving a more sustainable future and long track record of investing in or lending to companies supporting the energy transition. Earlier this year, Apollo launched its Sustainable Investing Platform, which targets to deploy $50 billion in clean energy and climate capital over the next five years and sees the opportunity to deploy more than $100 billion by 2030. Over the last five years, Apollo deployed over $19 billion1 into energy transition and sustainability-related investments, supporting companies and projects across clean energy and infrastructure, including offshore and onshore wind, solar, storage, renewable fuels, electric vehicles as well as a wide range of technologies to facilitate decarbonization.

Citigroup acted as capital markets advisor to Circulus. White & Case LLP acted as legal counsel to Circulus. Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel to the Apollo Funds.

Source: GlobeNewswire


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