Calumet Plans to Access Municipal Bond Market

Rhea-AI Summary

Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) has appointed Citigroup Global Markets Inc. as the lead underwriter for a proposed offering of $250 million in tax-exempt bonds. These bonds, to be issued by Cascade County, Montana, are aimed at supporting Montana Renewables, LLC, which produces sustainable fuels including SAF and Renewable Diesel. The bond issuance is anticipated in the first quarter of 2023. Executive Bruce Fleming expressed gratitude for the municipal bond capacity provided by Cascade County and the State of Montana, noting that the bonds are expected to enhance Montana Renewables' cost of capital.

Positive

• Appointment of Citigroup as lead underwriter, indicating strong financial backing.
• Expected $250 million bond issuance enhances Montana Renewables' cost of capital.
• Montana Renewables engages in producing sustainable fuels, aligning with market demand.

Negative

• None.

INDIANAPOLIS, Feb. 27, 2023 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) ("Calumet") announced today that its unrestricted subsidiary Montana Renewables, LLC ("Montana Renewables") has appointed Citigroup Global Markets Inc. to serve as lead underwriter in the proposed offering of $250 million* of tax-exempt bonds (the "Bonds") to be issued by Cascade County, Montana.  Montana Renewables is engaged in the production of SAF, Renewable Hydrogen, Renewable Diesel and Renewable Naphtha from qualifying solid waste and other feedstocks.  The Bonds are expected to be issued in the first quarter of 2023. 

"We thank Cascade County and the State of Montana for making their $250 million municipal bond capacity available," said Bruce Fleming, EVP Montana Renewables and Corporate Development. "We look forward to completing this bond issuance and expect it to be an upgrade to MRL's cost of capital."

This is not an offer to sell or a solicitation of an offer to buy bonds. Bonds may only be purchased through a broker.  Any such solicitation will only be made pursuant to an official statement. Prospective investors are encouraged to carefully review the preliminary official statement describing the Bonds.

*Preliminary, subject to change in price and/or availability, when, as and if issued.

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.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements and information in this press release may constitute "forward-looking statements." The words "expect," "continue," "should," or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate.

For additional information regarding factors that could cause our actual results to differ from our projected results, please see our filings with the Securities and Exchange Commission ("SEC"), including the risk factors and other cautionary statements in our latest Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and other filings with the SEC.

View original content:https://www.prnewswire.com/news-releases/calumet-plans-to-access-municipal-bond-market-301756504.html

SOURCE Calumet Specialty Products Partners, L.P.

FAQ

What is Calumet's plan for the $250 million tax-exempt bonds?

Calumet plans to use the $250 million from the bond offering to support Montana Renewables, LLC in its production of sustainable fuels.

When is the bond issuance expected for Calumet?

The bond issuance is expected in the first quarter of 2023.

Who is the underwriter for Calumet's bond offering?

Citigroup Global Markets Inc. has been appointed as the lead underwriter for the bond offering.

What types of products does Montana Renewables produce?

Montana Renewables produces Sustainable Aviation Fuel (SAF), Renewable Hydrogen, Renewable Diesel, and Renewable Naphtha.

Where will the bonds for Calumet be issued?

The bonds will be issued by Cascade County, Montana.