New Issue: Calumet prices $550 million 5.5-year senior notes at par to yield 11%

By Paul A. Harris

Portland, Ore., Sept. 27 – Calumet Specialty Products Partners, LP and its wholly owned subsidiary, Calumet Finance Corp., priced a $550 million issue of 5.5-year senior notes (Caa1/B-/B-) at par to yield 11%, according to market sources.

The yield printed on top of final yield talk. Initial guidance was in the high 10% to 11% area.

Barclays was the left lead bookrunner.

The Indianapolis-based master limited partnership and a producer of fuel products and specialty hydrocarbon products plans to use the proceeds, along with a draw on its revolving credit facility and cash on hand, to redeem its 6½% senior notes due April 2021 in their entirety.

Issuers:	Calumet Specialty Products Partners LP and Calumet Finance Corp.
Amount:	$550 million
Maturity:	April 15, 2025
Securities:	Senior notes
Left bookrunner:	Barclays
Joint bookrunners:	BofA Securities Inc., Wells Fargo Securities LLC and BMO Capital Markets Corp.
Co-managers:	Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, BBVA Securities Inc., Regions Securities Inc., U.S. Bancorp Investments Inc., Goldman Sachs & Co. LLC, Guggenheim and Seaport
Coupon:	11%
Price:	Par
Yield:	11%
First call:	Callable in years 2 to 3.5 at par plus full coupon (first call previously par plus 50% of coupon after two years)
Trade date:	Sept. 27
Settlement date:	Oct. 11
Ratings:	Moody's: Caa1
	S&P: B-
	Fitch: B-
Distribution:	Rule 144A for life
Price talk:	11%
Marketing:	Roadshow

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.