Company repays $30 million loan held by investors, gets warrants back
By Angela McDaniels
Tacoma, Wash., March 13 - Alon USA Energy, Inc. issued $30 million of 8.5% series B convertible preferred stock to a group of existing investors on March 8.
The 3 million preferreds have a liquidation preference of $10.00 each, according to a 10-K filing with the Securities and Exchange Commission.
The conversion rate is 1.4837 shares of common stock per convertible, which is equivalent to a conversion price of $6.74. The conversion price is a 30.5% discount to the company's closing share price on March 7, $9.70.
Dividends are payable quarterly in cash, common stock or a combination of cash and stock.
The convertibles are callable beginning on Oct. 28, 2017. Beginning March 8, 2015, the company can force conversion if the daily volume-weighted average price of its common stock is at least 130% of the conversion price for at least 20 trading days out of any 30 consecutive trading days.
The group of investors held $30 million of notes issued by Alon Brands, Inc., a $30 million Alon Brands 7% term loan due March 2016 and 3,092,783 warrants. Under the terms of the preferred stock purchase agreement, Alon repaid the term loan and the investors surrendered the warrants.
Dallas-based Alon USA Energy owns crude oil refineries and related pipeline and terminal assets.
| Issuer: | Alon USA Energy, Inc.
|
| Issue: | Series B convertible preferred stock
|
| Amount: | $30 million
|
| Preferreds: | 3 million
|
| Price: | $10.00
|
| Maturity: | Perpetual
|
| Dividends: | 8.5%, payable quarterly in cash or common stock
|
| Call option: | Beginning on Oct. 28, 2017
|
| Forced conversion: | At company's option if daily VWAP of common stock is at least 130% of conversion price for at least 20 trading days out of any 30 consecutive trading days
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Settlement date: | March 8
|
| Stock symbol: | NYSE: ALJ
|
| Stock price: | $9.18
|
| Market capitalization: | $511.67 million
|
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