Business
Calumet Specialty Products Partners, L.P. Announces Planned Sale-Leaseback Transaction for Shreveport Fuels Terminal Assets
Company expects to utilize proceeds to redeem $70 million of its 7.625% Senior Notes due 2022 INDIANAPOLIS, Feb. 1, 2021 /PRNewswire/ -- Calumet Specialty
About this update from Calumet, Inc
[{"type":"text","content":"Company expects to utilize proceeds to redeem $70 million of its 7.625% Senior Notes due 2022\n\n\nINDIANAPOLIS, Feb. 1, 2021 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (\"Calumet,\" the \"Partnership\" or the \"Company\") (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, announced today that it has reached an agreement in principle to enter into a sale-leaseback transaction of its fuels terminal assets at the Company's Shreveport refinery, which transaction is subject to customary closing conditions and the Partnership obtaining consent to amend the indentures governing its 7.625% Senior Notes due 2022 (the \"2022 Notes\") and 7.75% Senior Notes due 2023 (the \"2023 Notes\") to permit the transaction. The Partnership announced that it has reached an agreement in principle with the bondholders necessary to obtain the required consents to amend such indentures. The Partnership launched the consent solicitation (the \"Consent Solicitation\") to holders of its outstanding 2022 Notes and 2023 Notes on February 1, 2021. The Consent Solicitation will expire at 5:00 p.m., New York City time, on February 5, 2021, unless extended or terminated.\nHighlights of the Transaction:\nThe Company has negotiated a sale-leaseback transaction with Stonebriar Commercial Finance for the fuels terminal assets at the Shreveport refinery for total gross consideration of $70 million. All fuels and specialty production assets are outside the scope of this transaction. The seven-year lease agreement carries an implied interest rate of approximately 8.4%, with cash proceeds expected to be deployed to redeem $70 million of the 2022 Notes. The Company expects the process to conclude promptly following the completion of the Consent Solicitation from holders of a majority of the 2022 Notes and 2023 Notes. Calumet remains well capitalized with total pre-transaction liquidity of approximately $263 million as of December 31, 2020, including approximately $109 million of cash. Todd Borgmann, Senior Vice President & Chief Financial Officer, said, \"This transaction will allow Calumet to create maximum debt management optionality at a low cost. Conservative management of our debt maturities enables us to pursue our strategic deleveraging options with a focus on maximizing long-term unitholder value with order a...