Calumet’s MRL reports loan guarantee agreement with U.S. DOE

On January 10, Montana Renewables, LLC, as borrower, an unrestricted, non-guarantor subsidiary of Calumet, and the U.S. Department of Energy, as guarantor and loan servicer, executed a Loan Guarantee Agreement for a loan that guarantees $1.44B of financing to fund the construction and expansion of the renewable fuels facility owned by MRL, the company said in a regulatory filing. The LGA is a term loan facility, which provides for a series of two tranches, each subject to the achievement of certain milestone conditions. Tranche 1 provides for a single draw, the proceeds of which shall be used to repay MRL’s existing financing arrangements that financed the construction and operation of MRL’s existing renewable fuels facility. Tranche 2 provides for multiple draws, the proceeds of which shall be used to fund the construction of expansion of MRL’s existing renewable fuels facility. The LGA is secured by substantially all of MRL’s assets, and a pledge from Montana Renewables Holdings LLC over its right, title and interests to 100% of the equity interests of MRL.