By Paul A. Harris
Portland, Ore., March 24 – Calumet Specialty Products Partners, LP and its wholly owned subsidiary Calumet Finance Corp. priced a $325 million issue of 7¾% eight-year senior notes (B2/B+) at 99.257 to yield 7 7/8% on Tuesday, according to a syndicate source.
The yield printed at the wide end of yield talk in the 7¾% area.
BofA Merrill Lynch was the left bookrunner. Barclays, J.P. Morgan Securities LLC, RBC Capital Markets and Wells Fargo Securities LLC were the joint bookrunners.
The Indianapolis-based producer of specialty hydrocarbon products and fuel products plans to use the proceeds, together with a portion of the proceeds from its recent equity offering, to fund the redemption of all $275 million of its 9 5/8% senior notes due 2020, as well as to repay revolver debt and for general partnership purposes, including capital expenditures and working capital.
| Issuer: | Calumet Specialty Products Partners, LP and Calumet Finance Corp.
|
| Face amount: | $325 million
|
| Proceeds: | $323 million
|
| Maturity: | April 15, 2023
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Barclays, J.P. Morgan Securities LLC, RBC Capital Markets, Wells Fargo Securities LLC
|
| Co-managers: | MUFG, Natixis, U.S. Bancorp Investments Inc.
|
| Coupon: | 7¾%
|
| Price: | 99.257
|
| Yield: | 7 7/8%
|
| Spread: | 612 bps
|
| Call protection: | Three years
|
| Trade date: | March 24
|
| Settlement date: | March 27
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7¾% area
|
| Marketing: | Quick to market
|
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