Calumet Specialty Products (NASDAQ:CLMT) Partners, L.P. (NASDAQ: CLMT), a manufacturer of specialty hydrocarbon products, has initiated a private placement transaction to sell $200 million in senior secured notes, according to a filing with the Securities and Exchange Commission today. The company, along with its subsidiary guarantors, entered into a Note Purchase Agreement with various institutional investors, outlining the sale of 9.25% Senior Secured First Lien Notes due 2029.
The notes, which will mature on July 15, 2029, are set to be issued at par value and are expected to close on March 7, 2024, subject to standard closing conditions. Calumet plans to utilize the net proceeds from this placement, in conjunction with its available cash, to redeem all of its outstanding 9.25% Senior Secured First Lien Notes due in 2024 and $50 million of its 11.00% Senior Notes due in 2025.
This strategic financial move allows Calumet to restructure its debt profile by replacing older, high-interest debt with new notes, thereby potentially reducing interest expenses and extending the maturity of its debt obligations. The Note Purchase Agreement includes typical representations, warranties, and agreements from the issuers, as well as customary conditions for closing, obligations of the parties involved, and provisions for termination.
The transaction is being carried out under an exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, indicating it is limited to qualified institutional buyers and accredited investors. This approach is often used by companies to raise capital more efficiently and with fewer disclosure requirements than public offerings.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.