Calumet Specialty Products Partners, L.P. has successfully completed a notes offering, retiring its senior secured first lien notes due in 2024 and calling $50 million of senior notes due in 2025. The partnership closed $200 million in aggregate principal amount of a new series of 9.25% senior secured first lien notes due in 2029 in a private placement transaction, which were issued at par for proceeds of $200 million.
The net proceeds from the private placement were used to redeem all of the issuers’ outstanding 9.25% senior secured first lien notes due in 2024. Additionally, the partnership intends to use the remaining net proceeds, along with cash on hand, to redeem $50 million in aggregate principal amount of the issuers’ outstanding 11.00% senior notes due in 2025.
Todd Borgmann, the CEO, expressed satisfaction with the transaction, stating, "We were pleased to extend a significant portion of our near-term maturities, reduce our total interest expense, and add flexibility as we execute our deleveraging strategy."
Calumet Specialty Products Partners, L.P. manufactures, formulates, and markets a diversified slate of specialty branded products and renewable fuels to customers across a broad range of consumer-facing and industrial markets. The company is headquartered in Indianapolis, Indiana, and operates twelve facilities throughout North America.
The market has reacted to these announcements by moving the company's shares -0.3% to a price of $14.76. For more information, read the company's full 8-K submission here.
