Calumet Inc. (NASDAQ: CLMT) completed a private placement of $405 million in 9.75% senior notes due 2031 on January 12, 2026. The notes were issued at 98.996 % of par, yielding net proceeds of roughly $393 million after discounts and fees.
The offering was upsized from the originally announced $350 million, reflecting strong demand from institutional investors. The up‑size brought the total issuance to $405 million, a 15 % increase over the initial target, and underscored the market’s confidence in Calumet’s debt‑management strategy.
The proceeds will be used to redeem all outstanding 11.00 % senior notes due 2026 and 8.125 % senior notes due 2027. By extinguishing the higher‑coupon 2026 notes and the 2027 notes, Calumet will extend its debt maturity profile to 2031 and reduce its overall interest expense. The new 9.75 % coupon is lower than the 11.00 % rate on the 2026 notes, while the 2027 notes, although carrying a lower coupon, are being retired to free cash flow for growth initiatives.
The refinancing improves Calumet’s balance sheet by lowering its debt load from $2.3 billion in Q3 2025 to a more sustainable level and reducing annual interest expense. The company’s debt represents 54 % of total capital; the new notes will replace higher‑cost debt and provide a more favorable interest‑rate environment, which is expected to translate into a modest but meaningful reduction in interest expense over the next few years.
The cash freed by the debt repayment will support the company’s Montana Renewables MaxSAF expansion. The MaxSAF 150 project aims to increase sustainable aviation fuel capacity to 150 million gallons per year by mid‑2026, with an estimated capital cost of $20–$30 million. Calumet has also secured a conditional $1.44 billion U.S. Department of Energy loan guarantee to fund the larger MaxSAF initiative, positioning the company to capture growth in the renewable fuels market.
Todd Borgmann, Calumet’s CEO, said the broad support for the offering was largely a result of over $220 million of restricted‑group debt reduction in 2025 and over $120 million of cash generated in the second half of 2025. He added that the upsized offering, combined with revolver capacity, will eliminate all near‑term senior note maturities and provide a runway for continued value creation through dependable specialty‑product cash flow and the Montana Renewables expansion.
While no specific market‑price reaction was reported, the strong demand from institutional investors and the company’s clear deleveraging plan signal investor confidence in Calumet’s financial strategy and its shift toward renewable fuels and specialty chemicals.
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