Wed 14 Dec 2016, 15:07 GMT

Aegean upsizes and prices senior notes offering


Company prices $150 million in senior notes - $50 million more than previously announced.



Aegean Marine Petroleum Network Inc. has announced the pricing of $150 million in convertible senior notes due 2021 in a private offering to qualified institutional buyers - $50 million more than previously announced.

The company has granted the initial purchasers of the notes a 30-day option to buy up to an additional $22.5 million in aggregate principal amount of the notes in connection with the offering, which is expected to close on 19th December 2016.

The notes are to bear interest at a rate of 4.25 percent per annum, payable semi-annually in arrears on 15th June and 15th December of each year, beginning on 15th June 2017.

Upon conversion, noteholders will receive shares of the company's common stock, cash, or a combination of shares and cash, at the company's election. The conversion rate for the notes will initially be 66.9120 shares of common stock per $1,000 principal amount of the notes, which is equivalent to an initial conversion price of approximately $14.95 per share of common stock, and is subject to adjustment.

Aegean says it intends to use approximately $40 million of the net proceeds from the sale of the notes to repay a portion of the outstanding short-term indebtedness under the company's 2013 secured multicurrency revolving credit facility, and the remainder for general corporate purposes and working capital, which may include the funding of growth opportunities and will include the repurchase in the open market of a portion of the company's outstanding convertible unsecured senior notes due 2018.

As of Wednesday, Aegean says it has entered into agreements or understandings regarding repurchases of at least $40 million aggregate principal amount of convertible unsecured senior notes due 2018. The convertible unsecured senior notes due 2018 mature on 1st November 2018 and bear interest at 4.00 percent per year.


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