Calumet to sell $300 million five-year notes on Thursday; initial talk mid-8% area

By Paul A. Harris

Portland, Ore., Jan. 12 – Calumet Specialty Products Partners, LP and Calumet Finance Corp. expect to price a $300 million offering of senior notes due 2027 (Caa1/B-) on Thursday, according to market sources.

The deal, which was set to kick off on a Wednesday conference call with investors, is in the market with initial guidance in the mid-8% area, a trader said.

BofA Securities Inc. is the left bookrunner. Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Barclays, Regions Securities LLC and PNC Capital Markets LLC are the joint bookrunners.

U.S. Bancorp Investments Inc. and BMO Capital Markets Corp. are the co-managers.

The Rule 144A for life five-year notes become callable after three years at par plus 50% of the coupon. They feature a 35% equity clawback at par plus the full coupon during the non-call period and have a 101% poison put.

The Indianapolis-based master limited partnership and a producer of fuel products and specialty hydrocarbon products plans to use the proceeds plus cash on hand to redeem its 7¾% notes due 2023.

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