Calumet Specialty Products prints upsized notes at par to yield 8.125%; terms

Calumet Specialty Products Partners LP on Jan. 12 priced a $325 million offering of 8.125% five-year senior unsecured notes tight to guidance. The net proceeds from the BofA Securities-led offering, together with cash on hand, will be used to fund the redemption of all of Calumet's outstanding 7.75% senior unsecured notes due April 2023. The new issue was upsized from $300 million.

Calumet, rated B-/B3 with stable outlooks, produces and sells specialty hydrocarbon products in North America and internationally. The company on Jan. 11 released a preliminary fourth-quarter 2021 update, noting $333 million of liquidity at year-end 2021, including approximately $37 million of cash and cash equivalents and an undrawn revolving credit facility.

"Calumet's debt refinancing and the extension of the revolving credit facility maturity date will improve its liquidity," Moody's said Jan. 12. "The company's leverage will not change meaningfully as a result of the refinancing transaction." S&P Global Ratings has revised the outlook on the company to stable, from negative, supported by de-levering.

According to an SEC filing, Calumet is also seeking to amend its revolving credit facility to extend the maturity for five years; reduce commitments to $500 million, including a FILO tranche; and to replace Libor as a reference interest rate with a new rate based on the secured overnight financing rate.

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* Article amended at 12:35 p.m. ET on Jan. 13, 2022, to clarify Calumet's year-end 2021 liquidity.