Calumet Inc. (NASDAQ: CLMT) Announces $350 Million Private Placement to Strengthen Financial Position
Calumet, Inc. (NASDAQ: CLMT), a leading manufacturer and marketer of specialty branded products, has announced a significant financial move to reinforce its balance sheet. The company plans to offer $350 million in senior unsecured notes due 2031 through a private placement aimed at eligible purchasers. This offering is contingent on market conditions and is intended to facilitate the redemption of existing senior notes.
Details of the Offering and Redemption Actions
The proposed offering will be executed by Calumet's wholly owned subsidiaries, Calumet Specialty Products Partners, L.P. and Calumet Finance Corp. The net proceeds from this offering will be combined with existing cash and borrowings from Calumet’s revolving credit facility to redeem:
- All outstanding 11.00% Senior Notes due 2026, referred to as the "2026 Notes"
- $275 million of the outstanding 8.125% Senior Notes due 2027, referred to as the "2027 Notes"
Notably, Calumet has already issued notices of conditional redemption for these notes. The redemption dates are set for January 21, 2026 for the 2026 Notes and January 16, 2026 for the 2027 Notes. However, these redemptions are contingent upon the successful completion of the senior debt securities offering, which must raise at least $325 million.
Implications of the Redemption and Financial Strategy
The redemption of the 2026 and 2027 Notes is part of Calumet's broader strategy to manage its debt more effectively and optimize its capital structure. If the conditions for redemption are not met, Calumet will inform the holders of the 2026 Notes and 2027 Notes that the redemptions will be revoked, and these notes will remain outstanding.
Wilmington Trust, National Association serves as the trustee for both the 2026 and 2027 Notes and is acting as the paying agent for the redemptions.
Regulatory Considerations and Next Steps
The securities offered in this transaction have not been registered under the Securities Act of 1933 and are intended solely for qualified institutional buyers and non-U.S. persons under specific regulations. As a result, these securities cannot be sold within the United States without appropriate registration or exemption from registration.
This announcement should not be construed as a notice of redemption for the 2026 and 2027 Notes nor as an offer to sell any securities in any jurisdiction where such actions would be unlawful.
About Calumet Inc. (NASDAQ: CLMT)
Calumet, Inc., based in Indianapolis, Indiana, specializes in producing a wide array of specialty branded products and renewable fuels. The company operates twelve facilities throughout North America and serves a diverse clientele across consumer and industrial sectors.
Cautionary Statement Regarding Forward-Looking Statements
Forward-looking statements included in this announcement involve risks and uncertainties that may cause actual results to differ materially. Factors influencing these differences include market conditions, business operations, and regulatory changes. For more detailed information on potential risks, please refer to Calumet’s filings with the Securities and Exchange Commission (SEC).