| Item 1.02 | Termination of a Material Definitive Agreement. |
As previously reported, on January 10, 2025, Montana Renewables, LLC (“MRL”), a non-guarantor subsidiary of Calumet, Inc. (the “Company”), entered into a Loan Guarantee Agreement with the U.S. Department of Energy that provides for a guaranteed loan facility of up to $1.44 billion (the “DOE Facility”). In connection with the funding of the first tranche under the DOE Facility of approximately $782.0 million on February 18, 2025 and as described in more detail below, the MRL Asset Financing Agreements, the MRL Term Loan Credit Agreement, the MRL Revolving Credit Agreement and the MRL Inventory Financing Agreement, each as defined below, were terminated.
MRL Asset Financing Agreements
On February 18, 2025, MRL terminated the Master Lease Agreement (including the equipment schedules thereto) and the Interim Funding Agreement, each dated as of December 31, 2021, as amended from time to time (collectively, the “MRL Asset Financing Agreements”), between MRL and Stonebriar Commercial Finance LLC (“Stonebriar”). In connection with the termination of the MRL Asset Financing Agreements, MRL repurchased (i) a hydrocracker, intended to produce renewable diesel and related products, that was previously sold to and leased back from Stonebriar for a purchase price of $222.0 million, (ii) a feedstock pre-treater facility and related equipment that were previously sold to and leased back from Stonebriar for a purchase price of approximately $111.6 million (including an exit fee of $11.5 million) and (iii) a hydrogen plant and related equipment that were previously sold to and leased back from Stonebriar for a purchase price of approximately $58.7 million (including an exit fee of $11.5 million), in each case, with a portion of the proceeds of the first disbursement under the DOE Facility.
MRL Term Loan Credit Agreement
On February 18, 2025, MRL terminated the Credit Agreement, dated as of April 19, 2023, as amended from time to time (the “MRL Term Loan Credit Agreement”), among MRL, Montana Renewables Holdings LLC, the parent company of MRL and a subsidiary of the Company (“MRHL”), the lenders from time to time party thereto (including an affiliate of I Squared Capital) and Delaware Trust Company, as administrative agent (“Delaware Trust”). In addition, on the same date, MRL terminated the related loan documents, including but not limited to, (i) the Amended and Restated Security Agreement, dated as of October 3, 2023, as amended from time to time, between MRL and Wilmington Trust, National Association, as collateral trustee (the “Collateral Trustee”) and (ii) the Collateral Trust and Intercreditor Agreement, dated April 19, 2023, as amended from time to time, among MRL, MRHL, the Collateral Trustee and Delaware Trust. In connection with the termination of the MRL Term Loan Credit Agreement, MRL repaid in full the outstanding loans of approximately $83.8 million (including a make-whole premium of approximately $9.4 million and an early termination premium of approximately $0.7 million), together with accrued and unpaid interest, with a portion of the proceeds of the first disbursement under the DOE Facility.
MRL Revolving Credit Agreement
On February 18, 2025, MRL terminated the Credit Agreement, dated as of November 2, 2022, as amended from time to time (the “MRL Revolving Credit Agreement”), among MRL, MRHL and Wells Fargo Bank, National Association, as administrative agent and lender (the “Wells Fargo”). In addition, on the same date, MRL terminated the related loan documents, including but not limited to, (i) the Guaranty and Security Agreement, dated as of November 2, 2022, as amended from time to time, among MRL, MRHL and Wells Fargo and (ii) the Amended and Restated Intercreditor Agreement, dated as of October 3, 2023, among MRL, Wells Fargo, Wells Fargo Commodities, LLC (“Wells Fargo Commodities”) and the Collateral Trustee. In connection with the termination of the MRL Revolving Credit Agreement, MRL repaid in full the outstanding loans of approximately $26.7 million, together with accrued and unpaid interest, with a portion of the proceeds of the first disbursement under the DOE Facility.
