Calumet, Inc. Unveils $100 Million Private Placement of 9.75% Senior Notes for Future Growth

Calumet, Inc. Announces Significant Private Placement

Calumet, Inc. (NASDAQ: CLMT), based in Indianapolis, is set to initiate a private placement offering totaling $100 million, targeting eligible purchasers under U.S. securities regulations. This strategic move aims to issue 9.75% Senior Notes due in 2028. The decision hinges on prevailing market conditions, reflecting Calumet's ongoing commitment to optimizing its financial structure.

Offering Details

This offering comes through Calumet’s wholly owned subsidiaries, Calumet Specialty Products Partners, L.P. and Calumet Finance Corp. The funds raised will be directed towards redeeming a portion of the outstanding 11.00% Senior Notes, which are due in 2026. This redemption process is scheduled to be wrapped up before April 15, 2025, showcasing Calumet’s proactive approach to manage and enhance its debt profile.

The 9.75% Senior Notes being offered mirror Calumet's previously issued notes of the same rate from June 27, 2023, totaling $325 million. While the terms remain largely equivalent, the new notes will have a separate indenture and distinct CUSIP numbers, ensuring clarity for investors.

Regulatory Compliance

It's crucial to note that these securities will not be registered under the Securities Act or relevant state laws. Therefore, they can't be sold in the U.S. unless they comply with exemption provisions. Calumet will sell these securities exclusively to qualified institutional buyers in accordance with Rule 144A, along with non-U.S. persons outside the United States under Regulation S.

This offering does not constitute a notice for redemption of the 2026 Notes and is not an invitation to purchase these securities in any jurisdiction where such actions would breach applicable laws.

Company's Vision

Calumet, Inc. operates a diversified range of specialty branded products and renewable fuels for both industrial and consumer markets. With twelve facilities across North America, the company is adept at meeting the needs of various sectors, underscoring its commitment to growth and resilience in an evolving market landscape.

Furthermore, Calumet's management emphasizes that certain statements in this press release constitute forward-looking statements. Phrases like “will,” “may,” “expect,” and “believe” are indicative of the company's outlook regarding various future developments, including the offering and its intended utilization of proceeds.

Management acknowledges the inherent uncertainties tied to these forward-looking statements, which stem from business, economic, competitive, and regulatory risks. These factors could potentially lead to outcomes that differ significantly from the anticipated results.

Conclusion

In summary, Calumet's $100 million private placement of 9.75% Senior Notes due in 2028 is a calculated step towards refining its financial sitting and bolstering its debt management strategy. By leveraging these funds to redeem earlier debt instruments, Calumet aims to strengthen its trajectory as a key player within its industry. Investors and stakeholders are encouraged to keep an eye on further updates as the offering unfolds.