Calumet, Inc. (NASDAQ: CLMT) completed a private placement of $150 million in 9.75% senior notes due 2031, adding to a $405 million series of the same notes issued earlier in January 2026. The new notes bring the company’s total senior debt at 9.75% to $555 million, all maturing in 2031.
The proceeds will be used to repay outstanding borrowings under Calumet’s revolving credit facility, thereby extending the company’s debt maturity profile and reducing its reliance on short‑term, floating‑rate financing. This move is part of a broader deleveraging strategy that has already reduced restricted debt by more than $220 million in FY2025 and lowered net recourse leverage from 8.2× to 4.9×.
Calumet’s management highlighted that the refinancing will also support ongoing investment in renewable fuel expansion projects, particularly the MaxSAF 150 initiative at its Montana Renewables segment. The company’s Q4 2025 results showed a net loss of $37.3 million versus $40.7 million in Q4 2024, while full‑year 2025 sales of $4,137.1 million were slightly down from $4,189.4 million in 2024. Adjusted EBITDA rose to $293.3 million in 2025, up nearly 30% year‑over‑year.
Segment performance underscores the strategic focus: Specialty Products and Solutions generated $88.5 million in adjusted EBITDA in Q4 2025, up from $51.9 million in Q4 2024; Montana Renewables posted a negative $5.4 million adjusted EBITDA in Q4 2025 versus $12.4 million in Q4 2024, reflecting margin pressure in renewable diesel; and Performance Brands reported $5.4 million versus $16.3 million in Q4 2024, impacted by the divestiture of the Royal Purple industrial business and non‑recurring insurance proceeds.
Management emphasized that the new notes, combined with the amendment of the asset‑based loan facility to a $500 million commitment maturing in 2031, strengthen liquidity and provide a more flexible capital structure. The company’s CFO noted that the extended maturity profile and reduced borrowing costs will support future growth initiatives while maintaining financial discipline.
The issuance signals Calumet’s continued confidence in its ability to refinance higher‑cost debt at a fixed rate, improve liquidity, and fund strategic expansion in renewable fuels, reinforcing its long‑term deleveraging and growth agenda.
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