Calumet (CLMT, Financial), which produces specialty hydrocarbons as well as some more commodity-like chemicals, recently issued this bond to refinance existing obligations. The company had to pay approximately 200 basis points more in coupon in order to attract interest in a market where sentiment towards the energy sector is extremely weak. The bonds have performed well as Calumet agreed to sell a Montana refinery and apply the proceeds to reduce debt. Further, Calumet benefited from the rebound in demand for riskier credits during the fourth quarter.
From First Eagle Investment (Trades, Portfolio)'s High Yield Fund fourth-quarter 2019 commentary.
