Core Viewpoint - Calumet, Inc. successfully closed a private placement of $405 million in Senior Notes, which will be used to redeem existing higher-interest debt, enhancing financial stability and operational capacity [1][2][3] Group 1: Offering Details - The private placement involved $405 million in aggregate principal amount of 9.75% Senior Notes due 2031, issued at 98.996% of par, resulting in net proceeds of approximately $393 million after expenses [1] - The offering was upsized from an initial size of $350 million, indicating strong market demand [1] Group 2: Use of Proceeds - The net proceeds from the offering will be combined with cash on hand and borrowings to redeem all outstanding 11.00% Senior Notes due 2026 and 8.125% Senior Notes due 2027 [2] - This strategic move aims to eliminate near-term senior note maturities, thereby improving the company's financial flexibility [3] Group 3: Operational Context - The offering's success was attributed to over $220 million in debt reduction in 2025, driven by cost reductions and operational improvements [3] - The company generated over $120 million in cash in the second half of 2025, contributing to the capacity for this offering and future growth initiatives [3] Group 4: Company Overview - Calumet, Inc. manufactures and markets a diverse range of specialty branded products and renewable fuels across various consumer and industrial markets [4] - The company is headquartered in Indianapolis, Indiana, and operates twelve facilities throughout North America [4]

Core Insights - Calumet, Inc. anticipates a net loss between $69 million and $12 million for the year ended December 31, 2025, with Adjusted EBITDA with Tax Attributes expected to range from $285 million to $305 million [2][19]. Financial Performance - The company reported a significant reduction in restricted debt by over $220 million in 2025, attributed to structural cost improvements exceeding $70 million, cost efficiencies of approximately $20 million, and a $110 million divestiture of the Royal Purple Industrial business [3]. - As of December 31, 2025, Calumet had approximately $250 million of liquidity in the Restricted Subsidiaries Group and total liquidity of about $447 million, including restricted cash [3]. Operational Highlights - The company achieved an increase of 1.3 million barrels in annual production, positioning itself for durable free cash flow generation and continued deleveraging in 2026 [3]. - Montana Renewables marked a pivotal year with the successful completion of a U.S. Department of Energy loan, eliminating around $80 million in annual cash debt service, and monetizing over $90 million in producer tax credits during 2025 [3]. Future Outlook - The company is optimistic about the long-term growth and margin outlook for Montana Renewables, especially with the MaxSAF expansion on track for the second quarter of 2026 and anticipated favorable regulatory developments [3].