PureCycle Technologies, Inc. has closed its previously announced concurrent public offerings, raising aggregate net proceeds of approximately $432.5 million. The offerings comprised $287.5 million aggregate principal amount of its 4.75% convertible senior notes due 2032 and 19,854,000 shares of its common stock. The company intends to use the net proceeds to repurchase a portion of its outstanding 7.25% green convertible senior notes due 2030, thereby optimizing its capital structure and reducing future interest obligations.

The Offerings closed on June 15, 2026. PureCycle priced the Notes Offering to include $37.5 million aggregate principal amount of notes issued to the underwriters pursuant to the exercise in full of their over-allotment option. The Stock Offering included 2,283,800 shares of common stock issued to the underwriters pursuant to the full exercise of their option to purchase additional shares. The Offerings were made pursuant to an automatically effective shelf registration statement on Form S-3 (File No. 333-296672) filed with the U.S. Securities and Exchange Commission (SEC) on June 10, 2026.

Offering Details

Morgan Stanley acted as the sole bookrunner for each of the Offerings. The final prospectus supplements and accompanying prospectuses relating to the Offerings have been filed with the SEC.

Notes Specifications

The 4.75% notes are general unsecured obligations of PureCycle, accruing interest payable semiannually in arrears on January 1 and July 1 of each year, beginning January 1, 2027. The notes will mature on July 1, 2032. The initial conversion rate is 90.2242 shares of common stock per $1,000 principal amount of notes, representing an initial conversion price of approximately $11.08 per share. PureCycle may not redeem the notes prior to July 6, 2029.

Use of Proceeds

The primary allocation of the capital raised is directed towards debt management. PureCycle expects to use approximately $246.3 million of net proceeds to repurchase approximately $216.0 million aggregate principal amount of its outstanding 7.25% Green Convertible Senior Notes due 2030 in privately negotiated transactions. The company anticipates that these repurchases will settle on or about June 15, 2026. Remaining proceeds will be used to repurchase additional Green Convertible Notes from time to time and for working capital and other general corporate purposes.

PureCycle Technologies and Innovia Films have successfully produced white, cavitated biaxially oriented polypropylene (BOPP) film using PureCycle's PureFive Choice resin. The film contains more than 40% post-consumer recycled (PCR) content and is targeted at brand owners seeking to introduce recycled content into their white, cavitated BOPP applications. This development addresses the growing demand for sustainable packaging solutions driven by regulatory requirements and voluntary commitments.

White, cavitated BOPP film is a critical material in consumer packaging, known for its opacity, light weight, and printability. It is widely used in food-contact applications such as candy wrappers, ice cream novelty wrappers, snack packaging, and roll-fed labeling. The film's cavitated structure provides a paper-like feel and an ideal print surface while maintaining mechanical performance and moisture barrier properties essential for food packaging.

The successful production of this film using PureFive Choice resin marks a significant commercial expansion for post-consumer recycled polypropylene in flexible packaging. Innovia Films conducted comprehensive process evaluations, assessing resin behavior across the full cavitated BOPP production sequence. The trials showed that films made with varying percentages of PureFive Choice resin delivered comparable mechanical, barrier, and sealing properties to films made with virgin polypropylene resin.

Regulatory and Market Drivers

The achievement comes as Extended Producer Responsibility (EPR) legislation reshapes procurement decisions for flexible packaging converters and brand owners. In the United States, California's SB 54 mandates virgin plastic reduction, driving reformulation across the supply chain. In Europe, the Packaging and Packaging Waste Regulation (PPWR) expands mandatory recycled content targets for plastic packaging beginning in 2030, with particular urgency for film and flexible formats.

PureCycle's PureFive Choice resin is positioned to help converters and brand owners meet these regulatory requirements without sacrificing performance or processability. The resin is produced through PureCycle's patented dissolution recycling process, which removes color, odor, and contaminants from post-consumer polypropylene to yield a recycled resin suitable for a wide range of end uses.

Industry Impact

Beyond regulatory compliance, demand for PCR-content flexible packaging is driven by major consumer goods companies' voluntary commitments to the Ellen MacArthur Foundation's New Plastics Economy Global Commitment. Hundreds of brand owners have pledged to incorporate recycled content and advance circularity across their packaging portfolios. White, cavitated BOPP film has historically been challenging to incorporate with meaningful recycled content, and this collaboration provides a commercially scalable path to meeting those pledges.

Key Attributes of PureFive Choice Resin

Chris Freshwater, Market Manager at Innovia Films, highlighted the significance of the collaboration, stating that PureCycle's dissolution recycling technology is a "gamechanger" for introducing post-consumer recycled content to films with an energy-saving process. Pete Dias, PureCycle Senior Director of Market, Product, and Application Development, emphasized that the successful production demonstrates PureFive resin's ability to meet the performance and appearance requirements of brand owners.