By Rebecca Melvin
New York, Sept. 11- Alon USA Energy Inc. priced $130 million of five-year convertibles after the market close Tuesday at par to yield 3% with an initial conversion premium of 32.5%, according to a news release.
Pricing of the Rule 144A deal came at the tight end of talk, which was for a 3% to 3.5% coupon and 27.5% to 32.5% premium.
Goldman Sachs & Co. and Barclays were joint bookrunners of the offering, which has a $20 million greenshoe.
In connection with the offering, Alon entered into privately negotiated convertible note hedge and warrant transactions with initial purchasers of the bonds.
The strike price on the warrants was set at about $20.09 per share, which boosts the initial conversion premium from the issuer's perspective to 80%.
Proceeds will be used to fund the cost of the note hedge transactions and to fund the repurchase of a portion of the outstanding senior secured notes due 2014 issued by Alon Refining Krotz Springs Inc., a subsidiary of the company.
Based in Dallas, Alon is a refiner and marketer of petroleum products.
| Issuer: | Alon USA Energy Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $130 million
|
| Greenshoe: | $20 million
|
| Maturity: | Sept. 15, 2018
|
| Bookrunners: | Goldman Sachs & Co., Barclays
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $14.79
|
| Conversion ratio: | 67.6270
|
| Takeover protection: | Yes
|
| Call spread: | Yes, initial warrant strike price of $20.09, boosts conversion premium to 80% from the issuer's perspective
|
| Price talk: | 3%-3.5%, up 27.5%-32.5%
|
| Pricing date: | Sept. 10
|
| Settlement date: | Sept. 16
|
| Stock reference price: | $11.16 at close Sept. 10
|
| Distribution: | Rule 144A
|
| Market capitalization: | $694 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
