INDIANAPOLIS, January 24, 2022 /PRNewswire/ — Calumet Specialty Products Partners, LP (NASDAQ: CLMT) (“Calumet”, “Partnership”, “we” or “our”) has announced the closing of the offer for $325 million 2027 Senior Unsecured Notes (the “Offer”). The Partnership intends to use the net proceeds of the offering, together with available cash, to fund the previously announced redemption of all outstanding 7.75% Senior Notes due 2023 (the “2023 tickets”) and pay related expenses.
In November 2021, we announced a partnership with Oaktree Capital Management, LP (“Oaktree”) in the form of a $300 million investment in an Oaktree convertible term loan in Montana Renewables, LLC (“Montana Renewables”), an unrestricted wholly owned subsidiary of Calumet. Following this announcement, at the start January 2022, we closed on a $50 million investment by Stonebriar Commercial Finance (“Stonebriar”) to finance the construction of a renewable hydrogen plant at Montana Renewables to maximize renewable diesel production and further reduce the carbon intensity (CI) of Montana Renewables products.
In addition, Calumet recently announced the modification and extension of the revolving credit facility (“Revolver”). The revolver has been resized to $500 million and the maturity extended for a period of five years ending in January 2027 with advance rates adjusted upwards to provide additional liquidity.
“Our ability to raise such significant capital in a short period of time shows the strong investor and financial market support for Calumet’s transformational vision,” said the CEO. Steve Mawer. “This capital is being used to achieve our strategic deleveraging goals, starting what we believe to be one of the best renewable diesel businesses in the world. North America and managing our debt schedule. Our note offering has been oversubscribed and, with the closing of the note offering, we anticipate that Calumet’s capital requirements over the next two years will be substantially met. This allows us to focus on executing our transformation, which we believe will allow us to crystallize significant potential value for unitholders in Montana Renewables. We continue to believe that the most likely way to maximize value for unitholders of Montana Renewables is through separate public ownership as a leading renewable energy company. Our team continues to examine avenues and opportunities that would advance this vision.”
Caution regarding Forward-looking statements
Certain statements and information contained in this press release may constitute “forward-looking statements”. The words “may”, “expect”, “plan”, “intend”, “should”, “will”, “believe” or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. Statements discussed in this press release that are not purely historical data are forward-looking statements, including, but not limited to, statements regarding our company’s future capital requirements, plans and project benefits. Montana Renewables, and our business outlook and goals. These forward-looking statements are based on our current expectations and beliefs regarding future developments and their potential effect on us. Although management believes these forward-looking statements are reasonable as made, there can be no assurance that future developments affecting us will be those we anticipate. Our forward-looking statements involve important business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. In addition, we have based many of these forward-looking statements on assumptions that could cause our actual results to differ materially from our historical experience and our current expectations or projections. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements after the date on which they are made, whether as a result of new information, future events or otherwise, except to the extent required by law. applicable law. For more information about factors that could cause our actual results to differ from our forward-looking statements, please see our filings with the Securities and Exchange Commission (“SEC”), including risk factors and other cautionary statements in our most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q and other filings with the SEC.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any of these securities, and there will be no sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful.
About Calumet Specialty Products Partners, LP
Calumet manufactures, formulates and markets a diverse line of specialty products to customers in a wide range of industrial and consumer markets. Calumet is headquartered in Indianapolis, Indiana and operates twelve facilities across North America. More information can be found at www.calumetspecialty.com.
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SOURCE Calumet Specialty Products Partners, LP
