Registered direct offering consists of series A convertible preferreds
By Devika Patel
Knoxville, Tenn., Oct. 29 - Alon USA Energy, Inc. said it completed a registered direct offering of 8.5% series A convertible preferred stock. It also said it is evaluating a $25 million investment offer from a company.
The preferreds, priced at $10.00 apiece, were sold for $40 million in an offering that that priced for $60 million on Oct. 26. Each of the 4 million preferreds is convertible initially into 1.484 common shares, based on an initial conversion price of $6.74 per share. The conversion price is a 19.08% premium to $5.66, the Oct. 25 closing share price.
Alon may not redeem the preferreds prior to Oct. 28, 2017. After that date, Alon may call the outstanding preferreds at par plus unpaid dividends up to but excluding the redemption date.
Beginning Oct. 28, 2013, the issuer can force conversion of the preferreds if the daily volume-weighted average price of its common stock is 130% or more of the conversion price for at least 20 out of any 30 consecutive trading days.
Alon Israel Oil Co., Ltd. indicated that it intended to purchase about $30 million of the preferreds.
Dallas-based Alon USA Energy refines and markets petroleum products.
| Issuer: | Alon USA Energy, Inc.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $40 million
|
| Preferreds: | 4 million
|
| Price: | $10.00
|
| Dividends: | 8.5%
|
| Conversion price: | $6.74
|
| Conversion ratio: | Into 1.484 common shares (per preferred)
|
| Call option: | Forced conversion from Oct. 28, 2013, subject to 130% trigger; hard call from Oct. 28, 2017 at par
|
| Warrants: | No
|
| Investor: | Alon Israel Oil Co., Ltd. (for $30 million)
|
| Pricing date: | Oct. 26
|
| Settlement date: | Oct. 29
|
| Stock symbol: | NYSE: ALJ
|
| Stock price: | $5.74 at close Oct. 26
|
| Market capitalization: | $307.21 million
|
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