Calumet Specialty cancels planned $450 million 10-year bond offering

By Paul Deckelman

New York, July 22 - Calumet Specialty Products Partners, LP and its wholly owned subsidiary, Calumet Finance Corp., said Thursday that they have decided not to proceed with Calumet's planned $450 million offering of senior unsecured notes due 2020 (B3), citing market conditions as the reason for the decision.

Calumet, an Indianapolis-based specialty hydrocarbon products producer, was meantime heard by a source in the bank-loan market on Thursday to have also decided not to pursue its pending $375 million asset-backed revolving credit facility, although there was no official word from the company about the loan. Proceeds from the revolver and the bond deal were to have been used to repay the company's senior secured term loan in full and refinance its existing revolver.

The Rule 144A/Regulation S bond deal, which was to have been sold with registration rights, was to have come to market via joint bookrunners J.P. Morgan Securities Inc. and Bank of America Merrill Lynch, with Barclays Capital Inc., Deutsche Bank Securities Inc., Goldman, Sachs & Co. and Wells Fargo Securities as the co-managers. BofA and JPMorgan were also acting as the lead banks on the revolver.

Calumet announced the bond deal on July 12 and marketed it to would-be investors via a roadshow that wrapped up last Friday. Before the company's announcement Thursday that it was scrubbing the deal, several junk traders had expressed puzzlement this week that the deal had not yet come to market, even though the roadshow had concluded.

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