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Stock News in Focus: Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT)

Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) stock identified change of 97.99% away from 52-week low price and recently located move of -44.51% off 52-week high price. It has market worth of $307.87M. CLMT stock has been recorded -8.77% away from 50 day moving average and 6.44% away from 200 day moving average. Moving closer, we can see that shares have been trading -2.80% off 20-day moving average.

On Sept. 06, 2019, Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) a leading independent producer of specialty hydrocarbon and fuels products, notified that it has successfully amended the terms of its existing asset-based loan facility (the ABL or the facility) to increase the borrowing base on the facility by approximately $100 million.  The Company may draw on this increased ABL capacity solely to fund a portion of the redemption of all of the outstanding 6.50% Senior Notes due 2021, with the remainder of the 2021 Notes being redeemed using proceeds from a new unsecured senior notes offering and cash on hand.  Upon the effectiveness of such borrowings under the ABL, the fixed assets associated with the Company’s Great Falls, MT refinery would be added to the ABL collateral pool, which previously only included certain receivables and inventory. The increased borrowing base in the facility is available to consummate these proposed transactions through November 30.  See additional information in the 8-k filed for additional details.

The expansion of the ABL facility is a critical step as we work to position Calumet to potentially refinance its 2021 Notes in the unsecured bond market, stated Mr. Griffin.  We are very appreciative of the strong support of all our bank group.  With this ABL amendment in place, we will continue to closely monitor the market conditions to identify the most attractive time to execute our refinancing.

Griffin continued, If deployed in the near term, we expect that the $100 million of expanded capacity on the revolver, when combined with the $174 million of cash reported at the end of June and the anticipated free cash flow generated by the business, would enable the Company to retire the portion of the $810 million of 2021 Notes not otherwise refinanced.  We would expect to refinance the remaining approximately $500 million of 2021 Notes and to have approximately $300 million of liquidity before any refinancing fees, which we believe is more than adequate for the Company’s operations.

 The Basic Materials sector company, Calumet Specialty Products Partners, L.P. noticed change of 3.96% to $3.94 along volume of 80198 shares in recent session compared to an average volume of 166.43K. The stock observed return of -1.75% in 5 days trading activity. The stock was at -16.53% over one month performance. CLMT’s shares are at -7.73% for the quarter and driving a -38.68% return over the course of the past year and is now at 78.28% since this point in 2018.   The average volatility for the week at 5.17% and for month was at 6.59%. There are 78.14M shares outstanding and 61.73M shares are floated in market. Right now the stock beta is 1.84. 

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