INDIANAPOLIS, July 14, 2014 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) ("Calumet" or the "Partnership") today 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."
"This transaction demonstrates strong support from our lending syndicate. We appreciate their continued confidence in Calumet," concluded Murray.
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. Further details of the amended revolving credit agreement will be more fully described in a Current Report on Form 8-K that the Partnership will file with the Securities and Exchange Commission.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) 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.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our expectations for future sales and operating results are based on our forecasts for our existing operations and do not include the potential impact of any future acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels that meet our customers' unique and precise specifications; the impact of fluctuations and rapid increases or decreases in crude oil and crack spread prices, including the resulting impact on our liquidity; the results of our hedging and other risk management activities; our ability to comply with financial covenants contained in our debt instruments; the availability of, and our ability to consummate, acquisition or combination opportunities and the impact of any completed acquisitions; labor relations; our access to capital to fund expansions, acquisitions and our working capital needs and our ability to obtain debt or equity financing on satisfactory terms; successful integration and future performance of acquired assets, businesses or third-party product supply and processing relationships; our ability to timely and effectively integrate the operations of recently acquired businesses or assets, particularly those in new geographic areas or in new lines of business; environmental liabilities or events that are not covered by an indemnity, insurance or existing reserves; maintenance of our credit ratings and ability to receive open credit lines from our suppliers; demand for various grades of crude oil and resulting changes in pricing conditions; fluctuations in refinery capacity; our ability to access sufficient crude oil supply through long-term or month-to-month evergreen contracts and on the spot market; the effects of competition; continued creditworthiness of, and performance by, counterparties; the impact of current and future laws, rulings and governmental regulations, including guidance related to the Dodd-Frank Wall Street Reform and Consumer Protection Act; shortages or cost increases of power supplies, natural gas, materials or labor; hurricane or other weather interference with business operations; our ability to access the debt and equity markets; accidents or other unscheduled shutdowns; and general economic, market or business conditions. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with Securities and Exchange Commission ("SEC"), including our 2013 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
SOURCE Calumet Specialty Products Partners, L.P.