INDIANAPOLIS, 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.
Highlights of the Transaction:
- The 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 and
discipline."
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) is a
master limited partnership and a leading independent producer of
high-quality, specialty hydrocarbon products in North America. Calumet processes crude oil and
other feedstocks into customized lubricating oils, solvents and
waxes used in consumer, industrial and automotive products;
produces fuel products including gasoline, diesel and jet
fuel. Calumet is based in Indianapolis, Indiana, and operates nine
manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas and eastern Missouri.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements and information in this press release may
constitute "forward-looking statements." The statements discussed
in this press release that are not purely historical data are
forward-looking statements, including, but not limited to, the
statements regarding (i) the timing of the Consent Solicitation and
the expected participation by certain holders of 2022 Notes and
2023 Notes, (ii) the sale-leaseback transaction and expected use of
proceeds thereof (iii) the effect, impact, potential duration or
other implications of the ongoing novel coronavirus pandemic and
global crude oil production levels on our business and operations,
(iv) our expectation regarding our business outlook and cash flows,
(v) our expectation regarding anticipated capital expenditures and
strategic initiatives, and (vi) our ability to meet our financial
commitments, debt service obligations, contingencies and
anticipated capital expenditures. These forward-looking statements
are based on our current expectations and beliefs concerning future
developments and their potential effect on us. While management
believes that these forward-looking statements are reasonable as
and when made, there can be no assurance that future developments
affecting us will be those that we anticipate. Our forward-looking
statements involve significant risks and uncertainties (some of
which are beyond our control) and assumptions that could cause our
actual results to differ materially from our historical experience
and our present expectations. For additional information regarding
known material risks, uncertainties and other factors that can
affect future results, please see our filings with the SEC,
including our latest Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q. We undertake no obligation to publicly update
or revise any forward-looking statements after the date they are
made, whether as a result of new information, future events or
otherwise.
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SOURCE Calumet Specialty Products Partners, L.P.