The 6.50% Senior Notes due 2021 ..."were issued at par for net proceeds of approximately $884.1 million, after deducting the initial purchasers' discount..." (and certain expenses). It's meaningless, I know, but you have to laugh sometimes. How do you issue something at par but still give the first purchasers a discount?
I will say this, though. The purchasers of the 9 3/8% 2019 notes made an absolute killing. Those notes were issued at fairly significant discounts (1 tranche went out at 93 cents on the dollar), so their yield was probably more than 10%. And when they are redeemed, they get an extra payment to reflect a year's worth of interest, discounted back to today at federal government borrowing rates.
Right now, CLMT's debt makes up about 60% of total capital, which is way higher than its historical average. After the $ 300 MM unit offering/ATM sale/whatever, it will still be high, but a bit more manageable.
Are you suggesting that CLMT could've borrowed money cheaper and didn't? I'm sure they shopped around for the best price. After all, I think the last thing they'd want to do is pay more than they have to on borrowed money.