#United States #Calumet #Indianapolis #SEC Filing #ATM Program

Calumet, Inc. Introduces $65 Million At-the-Market Equity Offering Program

On January 14, 2025, Calumet, Inc. (NASDAQ: CLMT) announced a significant financial initiative aimed at fortifying its corporate finances. The company has filed a prospectus supplement with the U.S. Securities and Exchange Commission (SEC), marking the establishment of an at-the-market (ATM) equity offering program. This strategic move allows Calumet to issue and sell shares of its common stock with a total gross sales price of up to $65 million.

Key Aspects of the Offering

Calumet's ATM program is designed to provide flexibility in raising capital on the open market. It permits the company to sell the allotted shares at prevailing market prices, enabling it to react promptly to market fluctuations. This can mean that the sale prices may vary for different purchasers, depending on when the shares are sold and at what market rates.

The proceeds from this equity offering program are intended for a variety of general corporate purposes. These may include repaying existing debts, meeting working capital needs, or funding capital expenditures. As such, this initiative is a crucial component of Calumet's broader financial strategy, aimed at bolstering its operational capabilities.

Under the terms of the equity distribution agreement between Calumet and BMO Capital Markets Corp., shares will be marketed as “at-the-market offerings.” Specifically, Rule 415 stipulates this classification. The Sales Agent, as per the agreement, will utilize commercially reasonable efforts to sell the designated shares for Calumet. Notably, there is no minimum fundraising threshold stipulated for this offering, allowing the company to proceed with sales at its discretion.

Importance of the Equity Offering

This equity offering comes at a vital time as Calumet seeks to optimize its financial standing amid fluctuating market conditions. With its headquarters in Indianapolis, Indiana, Calumet operates multiple facilities across North America and manufactures a diverse range of specialty products and renewable fuels. Therefore, maintaining robust cash flow and capital for investments is essential for sustaining growth in a competitive marketplace.

In addition to the immediate financial benefits, the ATM program illustrates Calumet’s proactive approach toward capital management, enabling it to better navigate economic uncertainties. This is particularly pertinent in volatile sectors, where fluid capital positions can significantly impact operational efficiency and growth prospects.

Due Diligence for Investors

Investors interested in participating in this offering are encouraged to thoroughly review the prospectus supplement and associated base prospectus. These documents provide critical insights into the company’s financial standing and the structure of the ATM program. Potential investors should be aware that before acquiring any of these securities, a careful examination of the investment risks and market conditions is advisable.

The prospectus documents are accessible on the SEC's website and can also be requested directly from the Sales Agent at BMO Capital Markets Corp., located in New York.

This announcement not only marks a pivotal moment for Calumet but also reflects wider trends among companies leveraging equity offerings as a means to maintain financial agility in uncertain times. As the firm moves forward with this program, its implications for stakeholders and potential investors will undoubtedly warrant close attention in the coming months.

Conclusion

In summary, Calumet, Inc.'s initiation of a $65 million at-the-market equity offering program is a strategic step toward enhancing financial flexibility. By proactively managing capital through this vehicle, Calumet positions itself to respond effectively to both challenges and opportunities in its operational landscape.