#United States #Osceola #Hybar LLC #Steel Rebar #environmentally friendly

Hybar Expands Its Operations with Major Financing Raise

Hybar LLC, a leading name in the steel industry, has announced a significant financial milestone by raising $1.1 billion to construct a technologically advanced and environmentally sustainable scrap metal recycling steel rebar mill, referred to as the Expansion Mill. This new facility will be strategically located adjacent to its existing mill in Northeast Arkansas, contributing to Hybar's ambitious growth plans.

The current mill, which commenced operations just nine months ago, has already demonstrated notable success, achieving industry-leading product quality and environmental standards. Following a positive cash flow trajectory that started four months after its launch, Hybar has decided to double its rebar production capacity from this new expansion. Once operational, the Expansion Mill will bring the company's total production capacity to approximately 1.3 million tons annually, capturing nearly 13% of the U.S. domestic market for rebar.

The construction of this new facility is projected to take about 24 months. Like the existing mill, Hybar's partnership with SMS group, a renowned technology provider in the steel industry, highlights the commitment to utilizing best-in-class technology in their operations.

Aside from technological prowess, Hybar has strategically leveraged its unique transportation capabilities. Utilizing barge, rail, and truck services, the company ensures efficient delivery of its products across the United States. Hybar’s rebar is increasingly utilized in various high-profile projects, including data centers, medical campus expansions, and significant infrastructure enhancements like roads, bridges, and tunnels. The new mill aims to enhance its footprint in these burgeoning markets significantly.

An important element of Hybar's operational strategy is its sustainable energy sourcing. The company has established a favorable power agreement with Entergy Arkansas, boasting one of the lowest carbon emissions in their electric energy generation. Furthermore, Hybar's sister company, Green Clean Power LLC, operates the largest industrial solar and battery storage facility in the nation, located next to the mill. This green initiative is poised to allow Hybar to become the first steel producer in North America to operate using 100% renewable energy, contingent upon receiving the final necessary certifications.

Following the expansion, Hybar anticipates achieving an impressive output of nearly 5,000 tons of rebar per year per employee, which they believe will establish them as having the most productive workforce in global steel production.

Regarding Hybar's competitive edge, CEO Dave Stickler emphasized the company's superior technology, location advantages, and a highly motivated workforce. Stickler stated, "What truly distinguishes Hybar is our 'can-do, get-it-done' culture. By empowering our employees and minimizing bureaucratic red tape, we foster a responsive decision-making environment on the mill floor. This continuous pursuit of more efficient processes is crucial to our success."

Executive Director of the Arkansas Economic Development Commission, Clint O’Neal, commended Hybar’s impressive trajectory. He remarked, “Hybar is a true success story, investing in state-of-the-art facilities and producing sustainable steel from scrap in Arkansas. Their ongoing investment in our state is propelled by our robust infrastructure, skilled workforce, and conducive business environment. We are enthusiastic about our continuing partnership with them.”

In securing financing for this ambitious expansion, Goldman Sachs & Co. LLC and TPG Capital BD, LLC acted as joint lead bookrunners for a notes offering under Rule 144A of the Securities Act, with Truist Securities and Barclays serving as co-managers. Additionally, these firms, alongside Crews & Associates, played vital roles in underwriting a municipal bond offering to support Hybar’s growth.

With these developments, Hybar LLC is set on a path of extraordinary growth while maintaining a strong commitment to sustainability, positioning itself as a leader in the steel industry’s transition towards greener practices.