Calumet reaches milestone of largest sustainable aviation fuel producer in North America; enters full operations at Montana renewables; arranges bridge financing.
Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (“Calumet,” “we,” “our,” or “us”) announced that its Montana Renewables subsidiary (“MRL”) completed the startup of its Sustainable Aviation Fuel (“SAF”) and Pretreatment units. Calumet and its SAF off-taker plan to hold a ribbon cutting ceremony on May 10, 2023 to recognize this important milestone.
Bruce Fleming, CEO of Montana Renewables, said:
We are pleased to report that our leading Sustainable Aviation Fuel, Renewable Diesel, and Renewable Hydrogen platform is fully complete and operating.
“As we ramp up our pre-treater and draw down existing safety stock of clean feed, we reconfirm go-forward EBITDA guidance of $1.25 to $1.45 per gallon based on local sourcing of untreated feedstocks.”
On April 19, MRL closed a $75 million bridge loan with I Squared Capital. The bridge loan bears a variable rate of interest at SOFR plus 6.0 to 7.3% per annum and we have the flexibility to prepay 50% of principal under the bridge loan from free cash flow by the end of 2024. “Our capital markets strategy remains unchanged,” said Fleming.
“This transaction provides strategic optionality as we continue to build North America’s largest SAF business.” For further details of this financing, please refer to our Current Report on Form 8-K that will be filed today.
Todd Borgmann, Calumet’s CEO added:
Following a year in which we’ve demonstrated the power of Calumet’s legacy Specialty business, we can now add the full earnings power of Montana Renewables.
“Over the past two years, our Montana Renewables team has quickly launched a leading renewables platform and created a first mover advantage in SAF. This major accomplishment is the most recent step in our transformational plan to unlock value for Calumet’s unitholders.”
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) manufacturers, formulates, and markets a diversified slate of specialty branded products to customers in various consumer-facing and industrial markets. Calumet is headquartered in Indianapolis, Indiana and operates twelve facilities throughout North America.
About Montana Renewables, LLC
Montana Renewables, LLC is an unrestricted subsidiary of Calumet located in Great Falls, MT. Montana Renewables is permitted for 15,000 barrels per stream day of renewable feedstocks, which are converted into low-emission sustainable alternatives that directly replace fossil fuel products.
The renewable manufacturing plant began operations in late 2022. As the world recognizes a sustainability responsibility, MRL is poised to make immediate carbon reductions and stands ready to grow and innovate further. This business is a leader in North America’s energy transition, with our renewable products being delivered to Canada and the United States West Coast.
Calumet Reaches Milestone of Largest Sustainable Aviation Fuel Producer in North America; Enters Full Operations at Montana Renewables; Arranges Bridge Financing, INDIANAPOLIS, April 25, 2023
