PureCycle Raises $300M to Expand Plastic Recycling Capacity

PureCycle Technologies has secured a $300 million capital raise to expand globally and reach one billion pounds of installed capacity by 2030, with a projected EBITDA of $600 million annually. The company plans to build a 130-million-pound facility in Thailand with IRPC and establish facilities in Antwerp and Augusta. The capital raise involves the issuance of Series B convertible perpetual preferred stock with a 7% annual dividend.

PureCycle Technologies (PCT) has announced a significant $300 million capital raise, outlining a comprehensive growth plan to achieve one billion pounds of installed capacity by 2030, with a projected annual EBITDA of $600 million. The company secured this funding through a Series B convertible perpetual preferred stock offering, which includes a 7% annual dividend and a conversion price at a 30% premium to the 10-day VWAP [1].

The capital raise involves notable investors such as Duquesne Family Office and Wasserstein Debt Opportunities. This funding will enable PureCycle to expand globally, with plans to build a 130-million-pound recycling facility in Thailand with IRPC, expected to be operational by mid-2027. Additionally, PureCycle aims to establish facilities in Antwerp (130M pounds, operational 2028) and Augusta (300M+ pounds Gen 2 facility, operational 2029) [1].

The company's expansion roadmap is methodical and geographically diversified. By leveraging IRPC's existing infrastructure in Thailand's eco-industrial zone, PureCycle can reduce construction costs and accelerate time-to-market. Similar infrastructure synergies in Antwerp will enable efficient European expansion [1].

PureCycle's strategic partnership with IRPC represents a significant advantage. By utilizing IRPC's existing infrastructure, PureCycle can significantly reduce operational costs and speed up the deployment of its facilities. This partnership, along with the capital raise, positions PureCycle for substantial cash flow generation once the planned capacity is operational [1].

The $300 million raise provides PureCycle with the financial runway to execute its global strategy while maintaining financial flexibility. This expansion represents a meaningful step in scaling PureCycle's proprietary polypropylene recycling technology to industrial scale across three continents [1].

References:
[1] https://www.stocktitan.net/news/PCT/pure-cycle-announces-300-million-capital-raise-outlines-growth-plan-z8z5nbs8go28.html