Calumet, Inc. Successfully Completes Major Notes Offering to Strengthen Financial Position

Calumet, Inc. Completes Successful Notes Offering

On January 12, 2026, Calumet, Inc., a well-known player in the specialty products sector, announced the successful closure of an upsized private placement of senior notes amounting to $405 million. This initiative was managed through its wholly owned subsidiaries, Calumet Specialty Products Partners, L.P. and Calumet Finance Corp. The offering appealed broadly, drawing from private investors under Rule 144A and Regulation S, reflecting a strong demand in the financial market.

Details of the Offering

The issued senior notes carry an attractive interest rate of 9.75% and are due in 2031. They were sold at approximately 98.996% of their par value, resulting in net proceeds of around $393 million after accounting for discounts and offering expenses. Originally, the company had aimed for a lesser amount of $350 million, demonstrating the high investor interest that allowed for an impressive upsizing of the offering.

The funds generated from this offering, alongside available cash and borrowings from its revolving credit facility, are intended for repaying outstanding debts, specifically the 11.00% Senior Notes due in 2026 and the 8.125% Senior Notes due in 2027. This strategic approach aims to significantly reduce the company’s financial obligations in the near term, enhancing its balance sheet strength.

Executive Insights

Todd Borgmann, the CEO of Calumet, expressed gratitude for the overwhelming support shown by investors. He highlighted that the offering's success was largely propelled by a substantial reduction of over $220 million in restricted group debt in 2025, facilitated by concerted cost-cutting measures and operational enhancements. Borgmann also pointed to the generation of over $120 million in cash in the latter half of 2025 as a key factor that contributed to the company's ability to increase its offering.

“This upsized offering will allow us to eliminate all near-term senior note maturities, paving the way for further value creation through the robust cash flow we’ve established in our specialty business,” Borgmann stated, emphasizing the importance of operational stability and ongoing improvements.

Future Outlook

With the successful completion of the notes offering, Calumet aims to steer its focus towards enhancing operational efficiencies and driving growth within its specialty products divisions, while also considering expansions, such as the planned MaxSAF™ 150 expansion at Montana Renewables. This strategic realignment not only sets a solid foundation for the company’s future but also positions it favorably within the competitive landscape of the specialty products market.

Calumet, Inc., headquartered in Indianapolis, Indiana, specializes in manufacturing, formulating, and marketing a diverse range of branded products, alongside renewable fuels catering to varied consumer and industrial markets. The company operates twelve facilities across North America, reaffirming its commitment to serving clients with a broad portfolio of innovative solutions.

As Calumet continues on its path of growth and operational improvement, it remains committed to transparent communication with its investors and stakeholders, ensuring all strategic decisions align with the long-term vision of sustainable financial health.

Conclusion

The successful completion of this upsized notes offering marks a significant milestone for Calumet, underscoring its robust financial strategy and unwavering commitment to enhancing value for its stakeholders. As the company looks forward to a promising future, the efficient management of its financial resources will be central to its ongoing success.