Calumet Inc. (NASDAQ: CLMT) completed a private placement of $350 million in senior unsecured notes due 2031 under Rule 144A and Regulation S, using the proceeds to retire all outstanding 11.00 % senior notes due 2026 and $275 million of its 8.125 % senior notes due 2027.
The company issued conditional redemption notices for the 2026 and 2027 notes, with redemption dates set for January 21 2026 and January 16 2026, respectively. The redemptions will be executed at par plus accrued interest only if the $350 million offering is fully subscribed; otherwise the redemption rights are revoked, ensuring that the debt is retired only when the new financing is in place.
This refinancing is a key component of Calumet’s broader deleveraging strategy that has accelerated since its conversion to a C‑corporation in July 2024. By replacing higher‑yielding short‑term debt with longer‑term, lower‑cost notes, the company reduces its interest expense and extends maturities, freeing cash for growth initiatives such as its Montana Renewables SAF project and ongoing cost‑control programs. The move also aligns the capital structure with the company’s shift toward higher‑margin specialty products and renewable fuels.
Calumet’s recent financial performance underscores the timing of the transaction. In Q3 2025 the company posted a net income of $313.4 million and basic EPS of $3.61, a dramatic turnaround from a $100.6 million loss in Q3 2024. The strong earnings beat—$3.61 versus the consensus of $-0.38—was driven by robust demand in the Specialty Products & Solutions segment and disciplined cost management. The company’s total debt stood at $2.3 billion with a debt‑to‑total‑capital ratio of 0.54 as of January 6 2026, and the new notes will help lower that ratio while maintaining liquidity.
CEO Todd Borgmann highlighted that the refinancing, combined with the DOE loan for Montana Renewables, eliminates approximately $80 million of annual debt service and supports the company’s goal of generating durable free cash flow. He also noted that the company has reduced restricted debt by more than $220 million in 2025, reflecting the success of its cost‑control and divestiture initiatives. The new notes provide a stable, long‑term funding source that supports the company’s strategic pivot and positions it for continued growth in specialty and renewable markets.
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