#USA #Houston #Tailwater Capital #Blue Tide #Texas Capital

Blue Tide Expands Financial Resources with New Credit Facility

In a significant financial move, Blue Tide, a prominent North American producer of re-refined Group II+ base oils and a portfolio company of Tailwater Capital LLC, has announced the upsizing of its revolving credit facility. This strategic decision, made public on March 5, 2025, highlights Blue Tide’s commitment to enhancing its operational capabilities and expanding its market presence across the continent.

Increased Financial Flexibility

The upsized credit facility, which was led by Texas Capital and joined by Origin Bank, is set to support Blue Tide's growing financial requirements. Previously, in April 2024, the company secured its initial facility with Texas Capital to aid in the launch of its used motor oil (UMO) processing unit and to ensure operational flexibility during the construction of its hydrotreater. With production officially underway in Baytown, Texas, this new funding will fuel working capital and bolster expansion initiatives as Blue Tide transitions to full-scale operations.

Terry McHugh, CEO of Blue Tide, emphasized the importance of this expanded credit facility, stating, "This expansion reinforces Blue Tide’s financial strength and positions us for continued growth across the continent. Our partnership with Texas Capital has been invaluable, and we are excited to welcome Origin Bank as we embark on our next growth phase. We are confident that this new capital will provide the flexibility necessary to enhance our operational efficiencies, broaden our production capabilities, and secure our long-term success in the industry."

Strategic Partnership Highlights

This transaction not only reflects Blue Tide's growing financial robustness but also underscores its ability to forge strategic partnerships that align with its long-term vision. Casey Lowary, Managing Director at Texas Capital, remarked, "It was an honor to collaborate with Blue Tide's best-in-class management team. Leading this increased credit facility marks a significant step in facilitating the company’s ongoing growth."

The upsized facility signifies a pivotal milestone for Blue Tide, affirming its capacity to manage complex projects and establish a notable presence in a rapidly evolving market. Blue Tide has systematically built a reputation for providing sustainable recycling solutions within the lubricants sector, positioning itself as a critical player in the re-refined oils market.

Commitment to Sustainability

Based in Houston, Texas, Blue Tide is dedicated to creating and nurturing a network of used motor oil recycling facilities throughout North America. Leveraging advanced hydroprocessing technology, the company recycles used motor oil to produce high-quality paraffinic Group II+ base oils at its Baytown facility. This commitment to sustainability not only benefits the environment but also serves as a testament to the company's innovative practices in the oil recycling industry.

With over $4.9 billion in committed capital raised since its inception, Tailwater Capital, a private equity firm based in Dallas, is the backbone behind Blue Tide's ambitious endeavors. The partnership between Tailwater Capital and Blue Tide exemplifies a successful model of how private equity can drive growth in the energy and environmental sectors.

Moving forward, Blue Tide is set to leverage this financial boost to maximize operational efficiencies and expand its product offerings, ensuring that it remains at the forefront of the eco-friendly lubricants industry. As the company forges ahead with its plans, it remains committed to its mission of promoting sustainability while meeting the increasing demands of the lubricants market.

In conclusion, Blue Tide's successful upsized revolving credit facility is a clear indicator of its ongoing growth trajectory and evolving financial landscape, and the company looks forward to what lies ahead as it continues to innovate and expand.

For further details about Blue Tide’s operations and initiatives, please visit Blue Tide's official website.