Circulus Announces Strategic, Innovative Green Loan Financing with Riverstone Credit Partners

HOUSTON--(BUSINESS WIRE)--Circulus Holdings, PBLLC (“Circulus”), a Houston-based public benefit limited liability company (“PBLLC”) producing post-consumer resin (“PCR”) with a focus on plastics derived from recycled low-density polyethylene (“LDPE”), announced it has closed on a $100 million credit facility (the “Green Loan”) with Riverstone Credit Partners, L.P. (“Riverstone Credit Partners”), a dedicated credit investment platform focused on energy, power, decarbonization, and infrastructure managed by Riverstone Holdings LLC (“Riverstone”). The Green Loan was structured in compliance with the LSTA Green Loan Principles which aim to facilitate and support environmentally sustainable economic activity by financing eligible projects. Circulus is a portfolio company of Ara Partners, a Houston-based private equity firm specializing in industrial decarbonization investments.

An emerging leader in plastics recycling, Circulus is building out a widespread footprint of plants that utilize advanced technologies with a multistep mechanical process to transform lower grade plastic into PCR suitable for a variety of commercial and industrial applications. The company’s products address sustainability challenges with flexible plastics and revolutionize the use of PCR for plastic bags, shrink film, pouches, overwraps, and many more consumer-facing applications.

David Hudson, Founder & CEO of Circulus, commented, “We are excited at the opportunity to partner with Riverstone. The partnership enables Circulus to rapidly develop a broad network of facilities and further the company’s commitment to sustainable manufacturing. We look forward to supporting green-based jobs and preserving our environment for future generations.”

Daniel Flannery, a Managing Director at Riverstone, said, "We are pleased to partner with Circulus and further expand our portfolio of credit investments in green projects and sustainable companies. We believe that a strong commitment to managing ESG factors such as natural resource management, health and safety, community and stakeholder impact, climate change and greenhouse gas emissions, among other issues is critical to the success of our portfolio companies, funds, and firm. Circulus is aligned with this strategy by meeting the insatiable demand for high-quality PCR while meaningfully reducing greenhouse gas emissions as compared to virgin resin production."

Guggenheim Securities, LLC and White & Case LLP acted as sole financial adviser and legal adviser to Circulus. Simpson Thacher & Bartlett LLP served as legal adviser to Riverstone Credit Partners.

About Circulus

Circulus Holdings, PBLLC is focused on the conversion of plastic waste into post-consumer resins (PCR) utilizing world-class mechanical recycling solutions. Circulus contributes to the circular economy by recycling plastics to their highest and best use while eliminating waste. The company is headquartered in Houston, Texas and has facilities in development across the U.S. To learn more about Circulus, please visit www.circulus.com.

About Ara Partners

Ara Partners is a private equity firm specializing in industrial decarbonization investments. Ara Partners invests in the industrial & manufacturing, chemicals & materials, energy efficiency & green fuels and food & agriculture sectors, seeking to build businesses that are focused on sustainability and ESG principles. For more information on Ara Partners, please visit www.arapartners.com.

About Riverstone

Founded in 2000, Riverstone is an investment firm focused on executing private equity and credit investments in energy, power, decarbonization and infrastructure. To date, the Firm has raised approximately $43 billion of capital, which it has deployed across its platform to over 200 portfolio companies since inception. For more information about Riverstone, please visit www.riverstonellc.com.