Calumet Expands Terminal Asset Financing with Stonebriar to $120 Million

Calumet's Strategic Financing Expansion with Stonebriar

In a significant financial development, Calumet, Inc. (NASDAQ: CLMT) has announced an extension of its terminal asset financing with Stonebriar Commercial Finance LLC, valued at $120 million. This decision promises to reshape the financial landscape for Calumet, leading to improved liquidity and a stronger balance sheet as the company continues its operations.

Key Details of the Financing Agreement

On July 28, 2025, Calumet revealed that this agreement would enable them to secure $80 million in proceeds, marking a substantial increase from the previous appraised value of $70 million under an established sale-leaseback arrangement. Originally slated for repurchase in February 2027, this transaction enables Calumet to bolster its financial capabilities and repurchase a portion of its outstanding Senior Notes due in 2026. The past financing model had left a remaining balance of $40 million, which will now effectively diminish through the current arrangement.

The new financing carries a capital cost of 10.75%, indicating a careful balancing of risks and returns for Calumet as they navigate their financial obligations.

The Plan Ahead

Calumet has plans to utilize the net proceeds from this financing for redeeming up to $80 million aggregate principal amount of its 11.00% Senior Notes, ahead of the redemption date set for August 12, 2025. This strategic maneuver is anticipated to reduce the company's overall debt, enhancing its future financial health.

Todd Borgmann, CEO of Calumet, highlighted the importance of this partnership with Stonebriar, emphasizing the enhanced value from their Shreveport facility. He stated, “The substantial value increase recognized through this transaction is a result of our Shreveport team’s relentless focus on improving the reliability and throughput of our facility.” This sentiment speaks to the operational improvements made at Calumet’s site, showcasing their commitment to optimizing their resources.

About Calumet, Inc.

Calumet, Inc. specializes in the manufacturing and marketing of diverse specialty branded products and renewable fuels, catering to a broad spectrum of consumer and industrial markets. Headquartered in Indianapolis, Indiana, the company operates twelve facilities across North America, signifying its robust operational capabilities.

Regulatory Compliance and Forward-Looking Statements

It’s essential to note that this announcement includes forward-looking statements, which widely encompasses expectations about future business performance. There are inherent risks and uncertainties associated with these forecasts that Calumet acknowledges in its public communications. Accordingly, stakeholders are urged to approach these statements with due caution.

As Calumet prepares its next steps, the implications of this $120 million financial extension with Stonebriar mark a pivotal moment for the company, potentially leading to increased stability and reliability in the ever-changing market landscape. Investors and market watchers will continue to monitor how these actions shape Calumet’s future trajectory in the energy and manufacturing sectors.

For more information, the company invites stakeholders to refer to their Current Report filed with the Securities and Exchange Commission, which provides further details and financial disclosures.