Calumet Specialty Products has successfully amended its existing asset-based loan facility to increase the borrowing base on the facility by approximately $100 million.
The company may draw on this increased ABL capacity solely to fund a portion of the redemption of all of the outstanding 6.50% senior notes due 2021, with the remainder of the 2021 notes being redeemed using proceeds from a new unsecured senior notes offering and cash on hand.
According to a related 8-K filing, Bank of America served as administrative agent for the ABL facility.
Upon the effectiveness of the ABL borrowings, the fixed assets associated with the company’s Great Falls, MT refinery would be added to the ABL collateral pool, which previously only included certain receivables and inventory. The increased borrowing base in the facility is available to consummate these proposed transactions through November 30.
“The expansion of the ABL facility is a critical step as we work to position Calumet to potentially refinance its 2021 Notes in the unsecured bond market,” said D. West Griffin, executive vice president & chief financial officer.
“We are very appreciative of the strong support of all our bank group. With this ABL amendment in place, we will continue to closely monitor the market conditions to identify the most attractive time to execute our refinancing.”
Calumet Specialty Products Partners is a master limited partnership and a independent producer of high-quality, specialty hydrocarbon products in North America.