Update: Aegean Intends to Issue $150 Million Convertible Senior Notes

by Ship & Bunker News Team
Wednesday December 14, 2016
  • Adds that Aegean has increased the principal amount to $150,000,000
  • Adds further details on the offer revealed on Wednesday
  • Adds the offering is now expected to close on December 19, 2016

Aegean Marine Petroleum Network Inc. (Aegean) [NYSE: ANW] Wednesday announced its intention to issue a private offering of $150,000,000 in aggregate principal amount of convertible senior notes due 2021 - an increase of $50,000,000 from its announcement yesterday.

Aegean says the offering, which is now expected to close on December 19, subject to certain customary closing conditions, will grant the initial purchasers of the notes a 30-day option to purchase as much as an additional $22,500,000 in aggregate principal amount of the notes related to the offering - up from Aegean's announcement yesterday of $15,000,000.

"The Notes will bear interest at a rate of 4.25 percent per annum, payable semi-annually in arrears on June 15 and December 15 of each year, beginning on June 15, 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," explained Aegean.

"The conversion rate for the Notes will initially be 66.9120 shares of the Company's 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."

Approximately $40 million of the net proceeds from the potential sale will be used to repay a portion of Aegean's outstanding short-term debt held under its 2013 Secured Multicurrency Revolving Credit Facility.

The remaining sale proceeds will be used for general corporate purposes and working capital, such as funding of growth opportunities and the repurchase of a portion of the Company's outstanding 4.00 percent Convertible Unsecured Senior Notes due 2018, either in the open market, in negotiated transactions, or otherwise.

The news comes a month after Aegean reported another big jump in bunker sales volumes for 3Q 2016 - the fourth consecutive quarter with more than 4 million metric tonnes (mt) sold.