Calumet to Redeem $100M of 9.75% Notes at 102.438% on July 15
CLMT•Calumet’s subsidiaries have issued a redemption notice to retire all $100 million of its 9.75% senior notes due 2028 on July 15 at 102.438% of principal plus accrued interest. The company also reduced revolving credit borrowings in Q2 and expects these actions to lower interest expense and accelerate deleveraging.
1. Redemption Notice Details
Calumet Specialty Products Partners, L.P. and Calumet Finance Corp. have submitted a notice to redeem all $100 million of 9.75% senior notes originally issued in January 2025, due March 2028. The redemption is scheduled for July 15, 2026 at a cash price of 102.438% of principal plus accrued interest.
2. Balance Sheet Impact and Interest Savings
By retiring the notes at a premium, the company plans to reduce annual interest expense and strengthen liquidity. CFO David Lunin highlighted that these moves align with a broader strategy to improve leverage ratios and lower financing costs.
3. Revolving Credit Reduction
During the second quarter, Calumet reduced its outstanding borrowings under the revolving credit facility by an undisclosed amount, further lowering leverage. This drawdown supports the company’s focus on deleveraging while preserving headroom for working capital needs.
4. Strategic Outlook and Growth Funding
Management expects the redeemed debt and reduced credit borrowings to free up cash for higher-return projects. The company is prioritizing investments in specialty branded products and renewable fuels to drive long-term shareholder value.
