Calumet Calls $150M of 9.75% Notes, Trims $265M Debt Since July
CLMT has more than doubled off its 52-week low of $17.75.
Summary
Calumet is redeeming $150 million of its 9.75% senior notes due 2028 at 102.438% of principal plus accrued interest, effective October 25. Combined with the $100 million redemption in July and the $15.5 million Montana terminal financing repayment, the company will have retired roughly $265 million of debt in four months, saving about $26 million in annual cash interest. The move follows the August 7 8-K showing Q2 Adjusted EBITDA of $175.2 million and the September ABL increase to $600 million, which gave Calumet the liquidity headroom to keep paying down expensive debt. Calling 9.75% paper is a clear signal management sees deleveraging as the priority while specialty margins and fuel crack spreads hold up. The stock is trading near its 52-week high, so the market has already rewarded the balance-sheet progress; the incremental interest savings are modest relative to the company's size but reinforce the trend.
At the time of this announcement, CLMT was trading at $57.09 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $5.1B. The 52-week trading range was $17.75 to $59.87. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: PR Newswire.