A well-known asset management firm is lending post-consumer resin company Circulus Holdings hundreds of millions of dollars to help fuel growth.Circulus Holdings PBLLC
, which recycles
post-consumer low density polyethylene, has a deal with Apollo Global Management
for up to $300 million in senior secured loans to help build out the company around the country.
"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," Apollo Partner Corinne Still said in a statement.
Circulus is focused on LDPE, aiming to recapture items such as bags, pouches, wrap and film
that might otherwise be thrown away.
The company opened its locations in Riverbank, Calif., and Ardmore, Okla., with another plant currently under construction in Arab, Ala. Other sites also are under consideration.
"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," Circulus CEO Craig Foster said in a statement.
Apollo is a huge company and has decided to direct substantial assets toward sustainability focused projects. The company's Sustainable Investing Platform seeks to deploy $50 billion in clean energy and climate capital during the next five years and $100 billion by 2030.
Apollo, meanwhile, also has been on the other side of sustainability focused lending this year when the company took control of plastic packaging maker Novolex Holdings LLC. At the time, Apollo described financing for the acquisition as "the largest-ever" loan linked to sustainability issued to date."
Circulus is a public benefit limited liability company, or PBLLC. With that designation comes an expectation that the company will conduct business with more than just the bottom line in mind. Becoming a PBLLC provides the company with added legal protection to make decisions that go beyond just financial considerations.