By Stephanie N. Rotondo
Seattle, Dec. 14 – Aegean Marine Petroleum Network Inc. priced an upsized $150 million of five-year convertible notes at par to yield 4.25% with an initial conversion premium of 22.5% on Wednesday, the company said in a press release.
The notes were upsized from a planned $100 million.
The deal came in the middle of talk for a yield of 4% to 4.5% and an initial conversion premium of 20% to 25%.
There is a $22.5 million over-allotment option, which was increased from a planned $15 million.
The notes will be sold via a Rule 144A offering led by Jefferies.
Conversions will be settled with cash, common stock, or a combination thereof, at the company’s option. The conversion rate is 66.9120 shares per each $1,000 of notes, equal to $14.95 per share.
The paper is non-callable for three years and becomes provisionally callable if the stock hits a 130% price hurdle.
About $40 million of the proceeds from the deal will be used to repay a portion of debt under a 2013 secured multicurrency revolving credit facility. Remaining funds will be used for general corporate purposes and working capital, which could include funding growth opportunities and the repurchase of a portion of the 4% convertible senior notes due 2018.
The company noted that it had already entered into agreements or understandings to repurchase $40 million of the 4% convertibles.
Aegean Marine is a New York-based international fuel logistics company.
| Issuer: | Aegean Marine Petroleum Network Inc.
|
| Securities: | Convertible notes
|
| Amount: | $150 million, increased from $100 million
|
| Greenshoe: | $22.5 million, increased from $15 million
|
| Maturity: | Dec. 15, 2021
|
| Bookrunner: | Jefferies
|
| Coupon: | 4.25%
|
| Price: | Par of $1,000
|
| Yield: | 4.25%
|
| Conversion premium: | 22.5%
|
| Conversion price: | $14.95 per share
|
| Conversion rate: | 66.9120 shares
|
| Contingent conversion: | Yes, at 130%
|
| Net share settlement: | Yes
|
| Pricing date: | Dec. 14
|
| Settlement date: | Dec. 19
|
| Distribution: | Rule 144A
|
| Talk: | 4%-4.5% yield; 20%-25% conversion premium
|
| Stock symbol: | NYSE: ANW
|
| Stock price: | $12.20 as of Dec. 13 close
|
| Market capitalization: | $417.68 million
|
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