Under the terms of a stockholders agreement among Alon, Alon Louisiana and Alon Israel, the preferred stock was required to be exchanged for shares of Alon common stock on July 3, 2011, [image-nocss] if not previously exchanged as provided in the stockholders agreement. Pursuant to an amendment to the stockholders agreement, the mandatory exchange was accelerated to Dec. 31, 2009.
The 7,351,051 shares of common stock issued by Alon to Alon Israel in exchange for the Alon Louisiana preferred stock represent (a) the $80,000,000 par value of the preferred stock plus the amount of dividends accruing thereon through July 3, 2011, divided by (b) the $14.39 per share value for Alon common stock established for purposes of the exchange pursuant to the terms of the stockholders agreement.
As a result of the exchange, the number of outstanding shares of Alon's common stock has increased from 46,819,862 to 54,170,913 and Alon Israel's percentage ownership of Alon's outstanding common stock has increased from 72.26% to 76.02%.
Alon USA Energy, headquartered in Dallas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, 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 markets gasoline and diesel products under the FINA brand name and is a leading producer of asphalt. Alon also operates more than 300 convenience stores primarily in West Texas and New Mexico substantially under the 7-Eleven and FINA brand names and supplies motor fuels to these stores primarily from its Big Spring refinery. In addition, Alon markets under the FINA branded name to approximately 700 additional locations.
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