INDIANAPOLIS - Calumet, Inc. (NASDAQ: CLMT), an Indianapolis-based manufacturer of specialty products and renewable fuels with a market capitalization of $1.89 billion, announced today its intention to offer $100 million of 9.75% Senior Notes due 2028 in a private placement, subject to market conditions. The offering is being conducted by the company's subsidiaries, Calumet Specialty Products (NASDAQ:CLMT) Partners, L.P. and Calumet Finance Corp. According to InvestingPro data, the company currently operates with a total debt burden of $2.18 billion, making this offering a significant addition to its debt structure.
These New Notes mirror the terms of the existing 9.75% Senior Notes due 2028, which had $325 million in aggregate principal amount issued on June 27, 2023. The New Notes, however, will be issued under a separate indenture with different CUSIP numbers from the Original Notes.
The company has stated that the net proceeds from this offering will be used to redeem a portion of its outstanding 11.00% Senior Notes due 2026 on or before April 15, 2025. This planned redemption is part of the company's broader financial strategy. InvestingPro analysis reveals that Calumet's current ratio stands at 0.63, indicating potential liquidity challenges, though the stock has shown strong momentum with a 35% gain over the past six months. For deeper insights into Calumet's financial health and detailed analysis, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
The securities offered will not be registered under the Securities Act of 1933, as amended, or any state securities laws. Therefore, they may not be offered or sold in the United States absent registration or an exemption from such registration requirements. The offering targets qualified institutional buyers in accordance with Rule 144A and non-U.S. persons outside the United States as per Regulation S.
Calumet has clarified that this press release is not a notice of redemption for the 2026 Notes and is not an offer to sell or a solicitation of an offer to buy any securities. Furthermore, the company has stressed that there will be no sale of these securities in any state where such an offer, solicitation, or sale would be unlawful.
This announcement includes forward-looking statements, with words such as "intend," "believe," and "expect" indicating future plans and expectations. The company cautions that these statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
The information provided is based on a press release statement from Calumet, Inc.
In other recent news, Calumet, Inc. has disclosed preliminary financial results for Q4 2024, forecasting a net loss ranging from $54 million to $24 million and an Adjusted EBITDA between $45 million and $60 million. These recent developments include the closure of a Department of Energy loan and operational milestones in the company's specialties business and at Montana Renewables. The company also revealed plans for capital expenditures for 2025, which are expected to be between $50 million to $70 million in the specialties business and $10 million to $20 million for maintenance at Montana Renewables.
H.C. Wainwright and TD Cowen have maintained a Buy rating on Calumet shares, citing a stronger balance sheet and potential margin enhancements due to a supply-constrained environment for renewable fuels starting in 2025. Calumet also announced a significant $150 million equity investment into Montana Renewables Limited from its own balance sheet.
In its Q3 2024 earnings call, Calumet reported robust performance and strategic advancements, including record production volumes in its specialty products segment. The company also emphasized its growing role in the sustainable aviation fuel market, with plans to substantially increase production capacity by 2026. As part of these recent developments, Calumet is focusing on deleveraging and capitalizing on organic growth opportunities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.