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Calumet Inc. amends credit and monetization agreements

EditorNatashya Angelica
Published 16/07/2024, 21:38
CLMT
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INDIANAPOLIS, IN - Calumet Inc., a Delaware-incorporated petroleum refining company, has entered into significant amendments to its credit and monetization agreements, as disclosed in a recent SEC filing. On July 10, 2024, the company, formerly known as Calumet Specialty Products (NASDAQ:CLMT) Partners, L.P., finalized its conversion to Calumet Inc. and executed amendments to its existing financial structures to reflect this change.

The amendments include the Fifth Amendment to the Third Amended and Restated Credit Agreement with Bank of America (NYSE:BAC), N.A., which introduces Calumet Inc. and its General Partner as additional borrowers. This change expands the collateral base for securing obligations under the agreement.

Moreover, the company has taken over as the successor Borrower Agent, and terms have been updated to replace the Canadian Dealer Offered Rate (CDOR) with the Term Canadian Overnight Repo Rate Average (Term CORRA) for certain Canadian dollar-denominated loans.

Concurrently, an Omnibus Amendment Agreement was executed to modify the Monetization Master Agreement with J. Aron & Company LLC and other parties. This amendment adds Calumet Inc. as a party to the agreement and updates the guaranty previously provided by the Partnership to include Calumet Inc. as a guarantor for obligations under the Monetization Agreement.

These strategic amendments are part of Calumet Inc.'s broader restructuring following its organizational conversion. The company's SEC filing indicates that the full texts of the Fifth Amendment and the Omnibus Amendment will be included in its Quarterly Report on Form 10-Q for the quarter ending September 30, 2024.

Investors and interested parties can expect detailed documentation of these amendments to be made publicly available with the upcoming quarterly report. Calumet Inc. operates in the petroleum refining sector and is listed on The Nasdaq Stock Market LLC under the ticker symbol NASDAQ:CLMT.

This article is based on information from a press release statement and the SEC filing by Calumet Inc.

"In other recent news, Calumet Specialty Products Partners, L.P. announced that its unitholders voted in favor of converting the company from a master limited partnership to a C-Corporation, a move expected to enhance shareholder value. The conversion is expected to attract large institutional investors and passive index funds.

Calumet reported a robust Q1 EBITDA of $21.6 million and repaid $50 million of its 2025 notes, signaling a commitment to reducing debt. The company's Montana Renewables and MAX SAF projects are showing promising progress with a positive outlook on market demand.

The company clarified that its Sustainable Aviation Fuel is produced from tallow, not canola oil, and can adjust production based on market demand. Despite industry challenges, Calumet remains optimistic about future investor engagement and positive EBITDA contribution from Montana Renewables. These are some of the recent developments within the company."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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