Hybar, an Osceola, Ark.-based developer of a environmentally sustainable scrap metal recycling steel rebar mill, raised $700m in debt and equity financing.
The equity portion of the financing was led by TPG Rise Climate, the dedicated climate investing strategy of TPG’s global impact investing platform TPG Rise, and Global Principal Partners, the investment entity used by Hybar’s senior management team.
The company intends to use the funds to build, start up and operate the mill. Of the $700m raised, $470m will be spent to build the rebar mill. The remainder of the financing will be used to start-up and operate the mill and pay certain debt service costs during construction. The mill, which is expected to take 22 months to construct, is being built in northeast Arkansas on a 1,300-acre greenfield site with direct access to barge, rail and truck transportation options. The mill will produce a full complement of high-yielding rebar that will primarily be used in large infrastructure projects, including projects supported by the Infrastructure Investment and Jobs Act and the Inflation Reduction Act.
Hybar’s mill technology, including the water treatment facility, is being supplied by SMS group. The substation is being supplied by Primetals Technologies. Hybar’s technology is designed to reduce the amount of energy needed to produce rebar, especially when compared to other rebar mills in North America, many of which were built more than thirty years ago. It will also limit greenhouse gas emissions.
Led by Dave Stickler, chief executive officer, and Ari Levy, chief financial officer, Hybar plans to produce 630,000 tons of rebar annually with approximately 154 employees (4,090 tons of rebar production per year per employee). The 154-employee figure includes all employees.
FinSMEs
04/08/2023