DALLAS -- Alon USA Energy Inc. has announced that it has commenced a public offering of $60 million of the company's Series A convertible preferred stock. The offering will consist of 6 million shares of preferred stock with a liquidation preference of $10 per share.
Deutsche Bank Securities Inc. will serve as the sole bookrunning manager of the offering. The company intends to pursue the offering of preferred stock with Deutsche Bank in place of the previously announced $40 million convertible preferred rights offering.
The conversion rate, dividend rate and other [image-nocss] terms of the preferred stock will be determined by negotiations between the company and the underwriter. Alon Israel Oil Co. Ltd., the company's majority shareholder, has indicated its desire to purchase approximately $30 million of the $60 million of preferred stock being offered.
A registration statement relating to the preferred stock has been filed with the Securities & Exchange Commission (SEC) but has not yet become effective. Offering materials, including a prospectus describing the terms of the offering and the preferred stock will be filed with the SEC following the SEC declaring the registration statement effective.
Alon USA Energy, headquartered in Dallas, is an independent refiner and marketer of petroleum products, operating primarily in the southcentral, southwestern and western regions of the United States. The company owns four crude oil refineries in Texas, California, Louisiana and Oregon, with an aggregate crude oil throughput capacity of approximately 250,000 barrels per day. Alon is the largest 7-Eleven licensee in the United States and operates more than 300 convenience stores in Texas and New Mexico. Alon markets motor fuel products under the FINA brand at these locations and at approximately 610 distributor-serviced locations.
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