Alon USA Energy Inc. (ALJ)

[Timothy Smith]

ALJ issued US$130m of convertible debt in a private placement. The interest rate on the debt is 3.0%, and the conversion price is US$14.79, which is 33% above yesterday’s closing price.

ALJ will use US$112m of the proceeds to redeem a portion of the outstanding 2014 Krotz Springs Senior Notes, which have a balance of US$212m and carry an interest rate of 13.5%. ALJ will also use US$13.2m on an anti-dilution hedge than protects the company in the event of the stock price rising above US$20.09.