Calumet Announces New Funding Agreement with Stonebriar


   
    

    

   OAKHURST, N.J. (DTN) --- Calumet, Inc. announced its restricted subsidiary 
Calumet Montana Refining, LLC entered into a new agreement with Stonebriar 
Commercial Finance LLC in which CMR sold certain of its assets to Stonebriar 
for $150 million and leased back the same assets.

   The CMR Funding Agreement has closed and CMR received initial proceeds of 
$110 million, with the remaining $40 million due upon a future Eligible Capital 
Event. Calumet intends to use the proceeds to reduce outstanding borrowings 
under its revolving credit facility. This transaction carriers an approximate 
10.75% cost of capital once fully drawn and offers certain strategic early 
terminating options.

   Also, Calumet's unrestricted subsidiary Montana Renewables, LLC modified its 
existing agreements with Stonebriar to allow for their early termination. The 
existing sale and leaseback agreements between MRL and Stonebriar encompass 
MRL's Renewable Diesel Unit, Renewable Hydrogen Plant, and Pretreatment Unit.  
These agreements generated $400 million of funding to MRL during 2021 and 2022. 
 The agreements have now been amended to allow for their early termination upon 
the receipt of proceeds from an Eligible Capital Event including a loan 
guarantee from the U.S. Department of Energy. There can be no assurance that 
the company will be awarded a conditional commitment for a loan guarantee from 
the DOE or that any DOE-guaranteed loan will be funded. Upon termination, MRL 
can repurchase all of its assets from Stonebriar for an amount declining with 
time.  If the repurchase occurs on Nov. 1 of this year, it would cost 
approximately $403 million.

   "I'd like to thank Stonebriar for their continued support," said Todd 
Borgmann, CEO. "Collectively these agreements provide flexibility for Montana 
Renewables while allowing Stonebriar to retain a position in Calumet's capital 
structure."

    




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