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Calumet Inc. Announces Exchange Offer Settlement and Redemption Plans

Calumet, Inc., a well-known name in the specialty products sector, has made significant strides recently with its senior note offerings. The company made an official announcement regarding the successful conclusion of its previously declared private exchange offer aimed at the holders of its 11.00% Senior Notes, which mature in 2025. This decisive step not only reflects Calumet's commitment to optimizing its financial strategies but also enhances its market position.

On November 21, 2024, Calumet, alongside its subsidiaries including Calumet Specialty Products Partners, L.P. and Calumet Finance Corp., confirmed that tenders from holders totaling $354,399,000 in principal amount of the old notes were accepted. This led to the issuance of new notes, also bearing an interest rate of 11.00%, but with a maturity date now set for 2026. As a result of this exchange, a smaller amount of the original old notes, approximately $9,142,000, remains outstanding.

In conjunction with this exchange offer, Calumet also indicated that it would fully redeem the remaining old notes in circulation for their par value, plus any accrued and unpaid interest up to the redemption date. Notably, the redemption date is scheduled for December 10, 2024. Wilmington Trust, National Association, is overseeing the process as the trustee and paying agent for the old notes.

It should be noted that the new notes and exchange offer do not comply with the registration requirements as outlined by the U.S. Securities and Exchange Commission under the Securities Act of 1933. This means the new notes cannot be offered or sold within the United States without adhering to specific exemptions. Additionally, Calumet clarified that this offer was not extended to holders in jurisdictions where such an exchange would conflict with local securities laws.

This announcement marks an important pivot in Calumet’s financial operations, reflecting its commitment to providing shareholders with clearer financial pathways and reducing outstanding debt obligations. As they move forward, the company has issued caution regarding forward-looking statements associated with this development. Various foreseeable risks could impact the actual results, including economic fluctuations and regulatory changes, emphasizing that while management is optimistic, many external factors are beyond their control.

About Calumet

Calumet, Inc. specializes in the manufacturing, formulation, and marketing of a diverse portfolio of specialty-branded products and renewable fuels, serving clients across a wide array of consumer and industrial markets. The company is headquartered in Indianapolis, Indiana and operates twelve facilities throughout North America. Their commitment to innovation and adaptability positions them favorably within a dynamic market.

This latest financial maneuver demonstrates their proactive approach not only in managing debt but also in aligning their offerings with market conditions and investor expectations. Investors and stakeholders are encouraged to stay informed as Calumet navigates these changes and prepares for future challenges and opportunities.

For those who closely follow Calumet's progress and the wider market, this exchange offer and subsequent redemption plans will be key indicators of the company’s future health and strategic direction. As these developments unfold, further updates are expected to provide clarity and insight into the company's ongoing commitment to financial solidity and growth.