S&P rates Calumet loans BB-

Standard & Poor's said it assigned Calumet Lubricants Co. LP (no corporate credit rating), a subsidiary of Calumet Specialty Products Partners LP (B/positive), a BB- senior secured rating for its $510 million credit facilities.

The facilities consist of a $385 million term loan, a $75 million delayed-draw term loan and a $50 million pre-funded facility. The company's planned $375 million asset-based revolving credit facility has not been rated.

Proceeds will be used to finance the issuer's pending $267 million acquisition of Penreco and to repay outstanding debt on Calumet Lubricants' existing credit facility.

S&P said the corporate credit rating on Calumet Specialty reflects the company's position as a small, independent petroleum refiner structured as a master limited partnership, hedges on about 60% of fuel production through 2010, more stable specialty product margins, moderate debt leverage for the current rating and modest asset diversity provided by its three refineries and the pending acquisition of Penreco.

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