Calumet Accelerates Debt Paydown with $150 Million Note Redemption
Calumet, Inc. has issued a redemption notice for $150 million of its 9.75% senior notes due 2028. This move, set for October 25, follows a broader strategy to trim the company's debt load. By the end of this month, the firm will have retired approximately $265 million in obligations since July.
The redemption will be executed at 102.438% of the principal amount, plus accrued and unpaid interest. This latest maneuver builds on a series of financial actions taken by the Indianapolis-based manufacturer, including a $100 million note redemption in July and the full repayment of a $15.5 million terminal asset financing arrangement in Montana.
CFO David Lunin noted that the aggressive debt reduction program is expected to generate roughly $26 million in annual cash interest savings. The company plans to leverage its current operating momentum to continue deleveraging while pushing ahead with growth initiatives in its Specialties and Montana Renewables divisions.
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