Alon revises $60 million offering of perpetual convertible preferreds

Issue now a direct placement instead of a public offering

By Rebecca Melvin

New York, Oct. 22 - Alon USA Energy Inc. has revised registration of a planned $60 million offering of series A perpetual convertible preferred stock, making it a direct placement as opposed to a public offering, according to a registration statement.

When first launched last week, the deal was going to be sold via bookrunner Deutsche Bank Securities Inc. and was talked with a dividend of 8.25% to 8.75% and an initial conversion premium of 15% to 20%. The deal didn't price as planned Oct. 14.

Now the company itself plans to enter into one or more purchase agreements with investors, and the sale will commence as soon as practicable, according to the statement.

The planned 6 million shares of convertible preferreds have a liquidation preference of $10.00 per share.

Alon Israel Oil Co. Ltd., the company's majority shareholder, has indicated its desire to purchase about $30 million of the preferreds, or half of the proposed deal amount.

Company representatives did not return Prospect News' phone calls requesting further information.

Alon is a Dallas-based petroleum products refiner and marketer.

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