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INDIANAPOLIS - Calumet, Inc. (NASDAQ:CLMT) announced today it has extended its Shreveport terminal asset financing arrangement with Stonebriar Commercial Finance LLC, increasing the assigned value of these assets to $120 million from the previous $70 million. According to InvestingPro data, the company currently carries a total debt burden of $2.56 billion, making this refinancing particularly significant for its capital structure.
The transaction will provide Calumet with $80 million in proceeds, representing the difference between the new asset value and the remaining $40 million balance on the prior schedule. The company plans to use these funds to reduce its outstanding 11.00% Senior Notes due 2026. With a market capitalization of $1.46 billion and trailing twelve-month EBITDA of $89.9 million, this debt reduction could improve the company’s financial health, which InvestingPro analysis currently rates as "FAIR" based on comprehensive financial metrics.
The financing carries a cost of capital of 10.75%. Calumet has delivered a notice for a partial redemption of $80 million aggregate principal amount of its outstanding 2026 Notes at a redemption price of par, plus accrued and unpaid interest. The redemption date is set for August 12, 2025.
"Stonebriar continues to be a valued partner to Calumet," said Todd Borgmann, CEO, in the press release. "The substantial value increase recognized through this transaction is a result of our Shreveport team’s relentless focus on improving the reliability and throughput of our facility."
Under the previous sale leaseback agreement, the assets were scheduled to be repurchased in February 2027.
Calumet manufactures, formulates, and markets specialty branded products and renewable fuels. The company operates twelve facilities throughout North America and is headquartered in Indianapolis, Indiana.
The company stated it would provide more information in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission. Investors tracking Calumet’s progress should note that the company’s next earnings report is scheduled for August 8, 2025, just 11 days away. The stock currently trades at $16.87, having delivered a strong return over the last three months despite ongoing profitability challenges.
In other recent news, Calumet Inc. reported its first-quarter 2025 earnings, revealing a significant earnings miss with an actual EPS of -$1.87 compared to the projected -$0.38. However, the company surpassed revenue expectations, recording $993.9 million against a forecast of $919.3 million. Additionally, BofA Securities initiated coverage on Calumet, assigning a Buy rating and setting a price target of $15, highlighting the potential of the company’s biofuel business, Montana Renewables. The MaxSAF project is a key focus, aiming to expand renewable jet fuel capacity significantly, which BofA suggests could double Calumet’s EBITDA between 2025 and 2027. Furthermore, Calumet’s stockholders recently approved executive pay and elected four Class I directors to serve until the 2028 Annual Meeting. This includes John "Jack" G. Boss, Stephen P. Mawer, Karen Narwold, and Julio Quintana. These developments reflect ongoing strategic initiatives and investor interest in Calumet’s growth prospects.
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