Calumet Specialty Products Partners LP (NASDAQ: CLMT) and its wholly owned subsidiary Calumet Finance Corp. have priced their private placement under Rule 144A and Regulation S of the Securities Act of 1933, as amended, of $325 million in aggregate principal amount of 7.75% senior unsecured notes due 2023.
The notes mature on April 15, 2023, and will be issued at 99.257% of par. This private placement is expected to close on March 27.
Calumet intends to use a portion of the net proceeds from the private placement, together with a portion of the net proceeds from its recent equity offering, to fund the redemption of all of its outstanding $275 million aggregate principal amount of 9.625% senior unsecured notes due 2020. The remainder of the net proceeds from this private placement would be used to repay borrowings outstanding under its revolving credit facility and for general partnership purposes, including capital expenditures and working capital.