New York-listed Aegean said it intends to offer $100m of convertible senior notes due 2021 in private offering to institutional buyers. The company will also grant the initial purchasers of the notes a 30-day option to purchase up to an additional $15m worth of the notes in connection with the offering.
“The company intends to use approximately $40m 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 the repurchase in the open market, in negotiated transactions or otherwise, of a portion of the company's outstanding 4% convertible unsecured senior notes due 2018,” Aegean stated.
The proposed notes are expected to pay interest semi-annually in arrears, have a term of five years, and will be convertible into shares of the company’s common stock, cash or a combination of shares and cash.
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