Fri 18 Oct 2013, 12:34 GMT

Aegean announces pricing of $75m convertible senior notes


The public offering is expected to close on October 23, 2013.



Aegean Marine Petroleum Network Inc. has today announced that it priced its previously announced underwritten public offering of $75 million aggregate principal amount of its 4.00% convertible senior notes due 2018.

Aegean granted the underwriters a 30-day option to purchase up to an additional $11.25 million aggregate principal amount of notes in connection with the offering.

The offering is expected to close on October 23, 2013, subject to the satisfaction of certain customary closing conditions.

Aegean says it expects to use the net proceeds from this offering of approximately $72.1 million for general corporate purposes and working capital, including repayment of short-term indebtedness, without reduction in commitment.

The notes will be general senior unsecured obligations of Aegean and will pay interest semi annually in arrears on May 1 and November 1 of each year, beginning on May 1, 2014. Unless earlier converted, redeemed or repurchased, the notes will mature on November 1, 2018.

Upon conversion, holders of the notes will receive cash, shares of Aegean's common stock or a combination of cash and shares of Aegean's common stock, at Aegean's election. Prior to May 1, 2018, the notes will be convertible only upon certain circumstances and during specified periods. On or after May 1, 2018 until the close of business on the scheduled trading day prior to the maturity date, holders may convert their notes at any time.

The initial conversion rate for each $1,000 aggregate principal amount of notes is 70.2679 shares of common stock, equivalent to a conversion price of approximately $14.23 per share, and will be subject to adjustments described in the prospectus supplement relating to the notes.

On or after November 1, 2016, Aegean may redeem for cash all, but not less than all, of the notes at 100% of principal amount (plus accrued and unpaid interest up to, but not including, the redemption date) if the last reported sale price of its common stock exceeds 140% of the conversion price then in effect for 20 or more trading days in a period of 30 consecutive trading days ending on the trading day immediately prior to the date of the redemption notice.

In addition, if Aegean calls the notes for redemption, Aegean will, in certain circumstances, be required to increase the conversion rate for holders who convert their notes after Aegean delivers a notice of redemption and before the close of business on the business day immediately preceding the relevant redemption date.

Jefferies LLC is acting as the sole book-running manager for the offering. ABN AMRO Securities (USA) LLC, BB&T Capital Markets, a division of BB&T Securities, LLC and Cowen and Company, LLC are acting as co-managers of the offering.


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