#United States #Senior Notes #Indianapolis #Private Placement #Calumet Inc

Calumet's $100 Million Private Placement Announcement

On January 14, 2025, Calumet, Inc. (NASDAQ: CLMT), a well-known company in the energy sector, announced the pricing of a significant $100 million private placement for 9.75% Senior Notes, due in 2028. This move is part of their strategic financial planning to optimize their debt structure and enhance overall operational efficiency.

The offering will be executed through Calumet’s wholly owned subsidiaries, specifically Calumet Specialty Products Partners, L.P. and Calumet Finance Corp. The company plans to close this offering on January 16, 2025, pending the completion of standard closing procedures.

Details of the Offering

The newly issued Senior Notes are intended to mature on July 15, 2028, and are being offered at approximately 98% of their par value. Notably, these New Notes will mirror the existing 9.75% Senior Notes that had previously been issued by Calumet, which amounted to $325 million and were released on June 27, 2023. The terms of the New Notes will align closely with the original notes; however, they will be documented under a separate indenture and will have distinct CUSIP identifiers.

The proceeds from this offering are earmarked primarily for the redemption of a portion of the 11.00% Senior Notes that are set to mature in 2026. This redemption is expected to be completed on or before April 15, 2025.

Regulatory Compliance

As specified in the announcement, the securities being offered are not publicly registered under the Securities Act or any state securities laws, which means that they cannot be offered or sold in the U.S. unless in accordance with an exemption or in a transaction not subject to registration requirements. Calumet plans to primarily target persons believed to be qualified institutional buyers and non-U.S. individuals under the appropriate regulations.

Company Background

Calumet, Inc. is headquartered in Indianapolis, Indiana, and has established itself as a manufacturer and supplier of a diversified range of specialty branded products and renewable fuels. With 12 operational facilities across North America, the company serves both consumer and industrial markets, navigating complexities in the energy sector with strategic financial maneuvers like the current private placement.

Looking Ahead

As part of their commitment to transparency, Calumet emphasized that this announcement does not act as a notice of redemption related to the 2026 Notes, nor does it solicit sales or express intent to offer securities unlawfully. The company remains vigilant in navigating forward-looking statements, acknowledging potential risks and uncertainties that may impact their projections and overall business strategies moving forward.

The private placement marks a significant step in Calumet’s financial journey, aiming not just at liquidity but also at establishing a solid foundation for future growth.

In sum, the recent developments spotlight Calumet's proactive approach in managing its financial obligations and its commitment to creating shareholder value while adhering to regulatory frameworks.

[Source: Calumet, Inc.]