INDIANAPOLIS, Oct. 3, 2024
/PRNewswire/ -- Calumet, Inc. (NASDAQ: CLMT) (the "Company,"
"Calumet," "we," "our" or "us") announced today a series of related
agreements with Stonebriar Commercial Finance LLC
("Stonebriar").
- Our restricted subsidiary Calumet Montana Refining, LLC ("CMR")
entered into a new agreement with Stonebriar in which CMR sold
certain of its assets to Stonebriar for $150
million and leased back the same assets ("CMR Funding
Agreement").
- Our unrestricted subsidiary Montana Renewables, LLC ("MRL")
modified its existing agreements with Stonebriar to allow for their
early termination ("MRL Amended Agreements").
CMR Funding Agreement. The CMR Funding Agreement
has closed and CMR received initial proceeds of $110 million, with the remaining $40 million due upon a future Eligible Capital
Event (discussed below). Calumet intends to use the proceeds
to reduce outstanding borrowings under its revolving credit
facility. This transaction carries an approximate 10.75% cost of
capital once fully drawn and offers certain strategic early
termination options.
MRL Amended Agreements. The existing sale and
leaseback agreements between MRL and Stonebriar encompass MRL's
Renewable Diesel Unit, Renewable Hydrogen Plant, and Pretreatment
Unit. These agreements generated $400
million of funding to MRL during 2021 and 2022. The
agreements have now been amended to allow for their early
termination upon the receipt of proceeds from an Eligible Capital
Event including a loan guarantee from the U.S. Department of Energy
("DOE"). There can be no assurance that the Company will be awarded
a conditional commitment for a loan guarantee from the DOE or that
any DOE-guaranteed loan will be funded. Upon termination, MRL can
repurchase all of its assets from Stonebriar for an amount
declining with time. If the repurchase occurs on November 1 of this year, it would cost
approximately $403 million.
"I'd like to thank Stonebriar for their continued support," said
Todd Borgmann, CEO.
"Collectively these agreements provide flexibility for Montana
Renewables while allowing Stonebriar to retain a position in
Calumet's capital structure."
For more information, please see the Form 8-K that will be filed
with the Securities and Exchange Commission (the "SEC").
About Calumet
Calumet, Inc. (NASDAQ: CLMT) manufactures, formulates, and
markets a diversified slate of specialty branded products and
renewable fuels to customers across a broad range of
consumer-facing and industrial markets. Calumet is headquartered in
Indianapolis, Indiana and operates
twelve facilities throughout North
America.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements and information in this press
release may constitute "forward-looking statements." The words
"will," "may," "intend," "believe," "expect," "outlook,"
"forecast," "anticipate," "estimate," "continue," "plan," "should,"
"could," "would," or other similar expressions are intended to
identify forward-looking statements, which are generally not
historical in nature. 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) our expectations regarding the remaining $40 million of the purchase price pursuant to the
CMR Funding Agreement and the intended use of proceeds therefrom,
(ii) our expectations regarding the potential DOE loan facility,
(iii) whether and when the potential DOE loan facility will be
funded and (iv) our ability to meet our financial commitments, debt
service obligations, debt instrument covenants, 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. 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 or projections. 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. When considering
forward-looking statements, you should keep in mind the risk
factors and other cautionary statements included in the most recent
Annual Report on Form 10-K of Calumet Specialty Products Partners,
L.P. (the "Partnership") and other filings with the SEC by us or
the Partnership. The risk factors and other factors noted in the
Partnership's most recent Annual Report on Form 10-K and other
filings with the SEC by us or the Partnership could cause our
actual results to differ materially from those contained in any
forward-looking statement. All subsequent written and oral
forward-looking statements attributable to us or to persons acting
on our behalf are expressly qualified in their entirety by the
foregoing. Existing and prospective investors are cautioned not to
place undue reliance on such forward-looking statements, which
speak only as of the date of this press release. 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, except to the extent
required by applicable law.
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SOURCE Calumet, Inc.