Calumet Specialty Products Partners, L.P. Announces Pricing of $325 Million Upsized Private Placement of 8.125% Senior Notes due 2027

Rhea-AI Summary

Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) announced a successful private placement of $325 million in 8.125% Senior Notes due 2027, up from an initial offering of $300 million. The offering is set to close on January 20, 2022. Proceeds will fund the redemption of outstanding 7.75% Senior Notes due 2023. The new notes are being offered under Securities Act exemptions. Calumet specializes in manufacturing a diverse range of specialty products across North America.

Positive

• Upsized offering from $300 million to $325 million demonstrates strong investor demand.
• Proceeds will be used to redeem higher-interest debt, potentially improving financial stability.

Negative

• None.

INDIANAPOLIS, Jan. 12, 2022 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership" or "Calumet") and its wholly-owned subsidiary Calumet Finance Corp. announced today the pricing of their private placement (the "Offering") under Rule 144A and Regulation S under the Securities Act of 1933, as amended (the "Securities Act"), of $325 million in aggregate principal amount of 8.125% Senior Notes due 2027 (the "Notes"). The Notes mature on January 15, 2027 and will be issued at par. The Offering is expected to close on January 20, 2022, subject to customary closing conditions. The Offering was upsized to $325 million in aggregate principal amount of Notes from the original offering size of $300 million in aggregate principal amount of Notes.

Calumet intends to use the net proceeds from the Offering, together with cash on hand, to fund the previously announced redemption of all of its outstanding 7.75% Senior Notes due 2023 (the "2023 Notes") and pay related expenses.

The securities to be sold will not be, and have not been, registered under the Securities Act, or any state securities laws, and unless so registered, the securities may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Calumet plans to offer and sell the securities only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and to persons outside the United States pursuant to Regulation S under the Securities Act.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful.

About Calumet Specialty Products Partners, L.P.

Calumet Specialty Products Partners, L.P. manufactures, formulates and markets a diversified slate of specialty products to customers across a broad range of 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 statements discussed in this press release that are not purely historical data are forward-looking statements, including, but not limited to, the statements regarding the Offering and the use of proceeds therefrom and the conditional redemption of our 2023 Notes. 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. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause our actual results to differ materially from our historical experience and our present expectations. For additional information regarding known material risks, uncertainties and other factors that can affect future results, please see our filings with the Securities and Exchange Commission, including our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

 

 

 

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SOURCE Calumet Specialty Products Partners, L.P.

FAQ

What is the purpose of Calumet's $325 million private placement of Senior Notes?

The proceeds will be used to redeem all outstanding 7.75% Senior Notes due 2023 and cover related expenses.

When will the $325 million Senior Notes due 2027 mature?

The Senior Notes are set to mature on January 15, 2027.

What is the interest rate for Calumet's new Senior Notes?

The new Senior Notes have an interest rate of 8.125%.

When is the expected closing date for the private placement?

The offering is expected to close on January 20, 2022.

Can the Senior Notes be sold in the U.S.?

The securities will not be registered under the Securities Act, and may only be sold in transactions exempt from registration.