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BofA, Others Arrange Calumet’s $1B Credit Facility Amendment

July 15, 2014, 07:46 AM
Filed Under: Fuel & Petroleum

Calumet Specialty Products Partners, L.P. announced the successful completion of an amendment and restatement of its revolving credit agreement. The amended agreement, which is comprised of a syndicate of banks with commitments of $1.0 billion, matures in July 2019. Additionally, the amendment provides for a reduction in borrowing rates and increased covenant flexibility.

"This opportunistic transaction enabled us to increase the size of our revolving credit facility by $150 million, lower our borrowing costs and extend the term of the facility to 2019," stated Patrick Murray, Senior Vice President and Chief Financial Officer of Calumet.  "The amended credit facility provides increased liquidity and flexibility to support the continued growth of the Partnership as we seek to become one of the most integrated producers of specialty products in North America."

The amended terms of the agreement include revised borrowing rates. Borrowings can be either base rate loans plus a margin ranging from 0.50% to 1.00% or LIBOR loans plus a margin ranging from 1.50% to 2.00%, subject to adjustment based upon quarterly average excess availability. The amendment also provides for a quarterly unused line fee ranging from 0.25% to 0.375% per annum, subject to adjustment based upon average quarterly utilization, and letter of credit fees ranging from 1.50% to 2.00% per annum payable quarterly, subject to adjustment based upon quarterly average excess availability. The facility is used primarily to fund working capital requirements and general partnership purposes, as well as support the issuance of standby letters of credit. While the amended $1.0 billion revolving credit facility includes an increase in overall borrowing capacity, it does not imply an increase in overall borrowings under this facility.

Bank of America, N.A., J.P. Morgan Securities LLC and Wells Fargo Capital Finance, LLC acted as joint lead arrangers and joint book runners of the facility.  Calumet was represented in the transaction by Norton Rose Fulbright. 

Calumet Specialty Products Partners is a master limited partnership and a leading independent producer of high-quality, specialty hydrocarbon products in North America. Calumet processes crude oil and other feedstocks into customized lubricating oils, solvents and waxes used in consumer, industrial and automotive products. Calumet also produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana and has thirteen facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey and Oklahoma.

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