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Calumet Specialty Products Partners, L.P. Announces Closing of $550 Million Offering of Senior Unsecured Notes due 2025
INDIANAPOLIS, Oct. 11, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Company", "Partnership" or "Calumet"), a leading
About this update from Calumet, Inc
[{"type":"text","content":"INDIANAPOLIS, Oct. 11, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the \"Company\", \"Partnership\" or \"Calumet\"), a leading independent producer of specialty hydrocarbon and fuels products, today announced that it has successfully completed a $550 million offering of new senior unsecured notes maturing in 2025 (the \"Offering\").\nTransaction Highlights:\nCompletes effort to address original $900 million of notes maturing in 2021, with maturity of new notes at 5.5 years Net proceeds of the Offering plus borrowings under revolver and cash on hand to be used to redeem all existing senior notes due 2021 Estimated annual interest expense of approximately $138 million based on current capital structure is significantly lower than the approximately $156 million of interest expense reported in 2018 Issuing the new notes in the unsecured market provides optionality to address 2022 and 2023 maturities with free cash flow, asset sales, or refinancing, and preserves current credit ratings, enabling access to improved trade credit \"We are very pleased to complete the refinancing of our near-term debt,\" stated Tim Go, Chief Executive Officer of Calumet. \"The refinancing of our 2021 notes successfully addresses the remaining $761 million of the original $900 million of 2021 notes and reflects the continued support of our investors in our ongoing transformation efforts.\"\nWest Griffin, Chief Financial Officer of Calumet continued, \"Completing the refinancing of Calumet's largest and most near-dated debt obligation marks meaningful progress in our efforts to improve our balance sheet. Not only are the economics of the transaction nearly breakeven to the Company's cash flows, but by successfully issuing in the unsecured market, Calumet will have more options to address future debt maturities. Additionally, by staying in the unsecured market, the Company has protected its improved credit ratings and preserved important strategic gains such as improved access to trade credit. Now that the transaction is complete, Calumet can look towards the next step to enhancing its balance sheet and capital structure, and we look forward to continuing the positive momentum of our transformation.\"\nFollowing this closing of the new 2025 notes, and with all other conditions having been met, the previously-announced expa...