By Chris Wack
Calumet Specialty Merchandise Companions L.P. stated Friday that Warburg Pincus has agreed to take a position $250 million in Montana Renewables LLC, a renewable gas enterprise, within the type of a collaborating most popular fairness safety.
The deal values Montana Renewables at a pre-commissioning enterprise worth of $2.25 billion.
Calumet shares had been halted at $14.40 in premarket buying and selling.
The popular fairness funding is not interest-bearing and carries sure minimal return thresholds. In reference to the funding, Warburg Pincus may have a consultant on Montana Renewables’ four-member board of managers.
Calumet additionally stated Stonebriar Business Finance has invested a further $350 million by way of a pair of sale and leaseback contracts on prime of its present $50 million dedication to Montana Renewables.
The sale and leaseback transactions carry a 12.3% value of capital and supply sure strategic early termination choices. Concurrent with these transactions, a $300 million convertible funding from Oaktree Capital Administration LP in Montana Renewables has been retired.
As soon as absolutely operational, Montana Renewables, based mostly in Nice Falls, Montana, will use waste feedstocks to provide low-emission alternate options to fossil-fuel merchandise together with renewable hydrogen, renewable diesel and sustainable aviation gas, Calumet stated.
Write to Chris Wack at chris.wack@wsj.com
