Calumet Completes Working Capital Funding for Montana Renewables

Rhea-AI Summary

Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) announced the completion of two transactions to support the working capital needs of Montana Renewables LLC (MRL). The agreements included a Supply and Offtake Agreement with Macquarie Commodities, facilitating inventory monetization for renewable products, and a $90 million asset-backed revolving credit facility with Wells Fargo Bank. Bruce Fleming, EVP of Montana Renewables, stated these actions fulfill MRL's financing plan as operations commence.

Positive

• Secured $90 million asset-backed revolving credit facility with Wells Fargo.
• Executed Supply and Offtake Agreement with Macquarie Commodities for renewable feedstocks.

Negative

• None.

INDIANAPOLIS, Nov. 7, 2022 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) today announced the closing of two transactions that together fund the working capital needs of Montana Renewables LLC (MRL). A Supply and Offtake Agreement (SOA) with Macquarie Commodities and Global Markets provides inventory monetization for renewable feedstocks and products, as well as intermediation services connected with the purchase of renewable feedstocks. Simultaneously, a $90 million asset backed loan revolving credit facility (ABL) was executed with Wells Fargo Bank, NA, secured by accounts receivables and open blenders tax credit refunds.

"Now that Montana Renewables has commenced operations, these transactions ensure that our working capital needs are met going forward," said Bruce Fleming, EVP Montana Renewables. "Third party inventory financing has been in the MRL plan since day one, and we are pleased to execute on the plan as we launch operations." 

More details can be found in the Form 8-K filed today with the U.S Securities and Exchange Commission.

About Calumet Specialty Products Partners, L.P.

Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) manufacturers, formulates, and markets a diversified slate of specialty branded products to customers in various consumer-facing and industrial markets. Calumet is headquartered in Indianapolis, Indiana and operates twelve facilities throughout North America.

View original content:https://www.prnewswire.com/news-releases/calumet-completes-working-capital-funding-for-montana-renewables-301670866.html

SOURCE Calumet Specialty Products Partners, L.P.

FAQ

What financial support has Calumet provided for Montana Renewables (CLMT)?

Calumet has secured a $90 million asset-backed revolving credit facility and a Supply and Offtake Agreement with Macquarie Commodities.

What is the purpose of the transactions announced by Calumet on Nov. 7, 2022 (CLMT)?

The transactions are designed to fund the working capital needs of Montana Renewables LLC as it commences operations.

Who is involved in the financing agreements with Calumet (CLMT)?

The financing agreements involve Wells Fargo Bank and Macquarie Commodities.

When did Calumet announce the funding for Montana Renewables (CLMT)?

The announcement was made on November 7, 2022.