– $675 million of capital raised since November 2021
– Proceeds of capital raises used to de-lever, fund renewable diesel business and manage debt maturities
– Amended and extended revolving credit facility through 2027
Calumet Specialty Products Partners, L.P. (“Calumet”, “Partnership”, “we” or “our”) announced the closing of the offering for $325 million 2027 senior unsecured notes (the “Offering”).
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The Partnership intends to use the net proceeds from the Offering, along with cash on hand, to fund the previously announced redemption of all outstanding 7.75% Senior Notes due 2023 (the “2023 Notes”) and pay related expenses.
In November of 2021, we announced a partnership with Oaktree Capital Management, L.P. (“Oaktree”) in the form of a $300 million convertible term loan investment from Oaktree in Montana Renewables, LLC (“Montana Renewables”), a wholly owned unrestricted subsidiary of Calumet. Subsequent to that announcement, in early January 2022, we closed on a $50 million investment from Stonebriar Commercial Finance (“Stonebriar”) to finance the construction of a renewable hydrogen plant at Montana Renewables to maximize renewable diesel production and further reduce the Carbon Intensity (CI) of Montana Renewables products.
Additionally, Calumet recently announced the amendment and extension of the revolving credit facility (“Revolver”). The Revolver has been resized at $500 million and the maturity extended for a five-year term ending in January 2027 with advance rates adjusted upward to provide additional liquidity.
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“Our ability to raise such significant capital in a short period of time shows the strong investor and capital markets support for Calumet’s transformational vision,” said CEO Steve Mawer. “This capital is being used to deliver on our strategic objectives of de-levering, starting up what we believe will be one of the best renewable diesel businesses in North America and managing our debt maturity schedule.
Our notes offering was oversubscribed, and with the closing of the notes offering, we expect Calumet’s capital needs over the next two years will be mostly covered. This allows us to focus on executing our transformation, which we believe will allow us to crystalize significant unitholder value potential in Montana Renewables. We still believe that the most likely way to maximize unitholder value at Montana Renewables is in separate public ownership as a leading pure-play renewables company. Our team continues to examine paths and opportunities which would progress towards that vision.”
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