Alon USA Announces Closing of Registered Direct Offering of 8.50% Convertible Preferred Stock

Oct 29, 2010, 16:15 ET from Alon USA Energy, Inc.

DALLAS, Oct. 29 /PRNewswire-FirstCall/ -- Alon USA Energy, Inc. (NYSE: ALJ) (the "Company") announced today that it has successfully completed a registered direct offering of the Company's 8.50% Series A Convertible Preferred Stock (the "Preferred Stock") in an amount of $40 million.  The Company expects to receive net proceeds from the registered direct offering of approximately $39.4 million after deducting expenses of the offering.  

The Company sold 4,000,000 shares of the Preferred Stock at $10 per share.  Each share of the Preferred Stock has a liquidation preference of $10 per share and is convertible, at a holder's option, initially into 1.484 shares of the Company's common stock based on an initial conversion price of $6.74 per share of the Company's common stock (which represents a 17.5% conversion premium over the closing price of the Company's common stock on October 26, 2010), in each case subject to adjustments.

The Company decided not to pursue the previously announced underwritten offering of Preferred Stock as it believes that a registered direct offering of the Preferred Stock is in the Company's best interests at this time. The Company thanks those who expressed interest in the underwritten offering.  At this time the Company is also evaluating an offer from an investment company to invest up to $25 million in the Company.  

A final prospectus supplement relating to the Preferred Stock has been filed with the Securities and Exchange Commission. The offering of the Preferred Stock was made only by means of the prospectus supplement and related base prospectus, copies of which are available from Alon USA Energy, Inc, Attention:  Corporate Secretary, 7616 LBJ Freeway, Suite 300, Dallas, Texas  75251 (telephone:  972-367-3600).  An electronic copy of the final prospectus is available from the Securities and Exchange Commission's Web site at www.sec.gov.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy and there will be no sale of the Preferred Stock in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. 

Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. The Company owns four crude oil refineries in Texas, California, Louisiana and Oregon, with an aggregate crude oil throughput capacity of approximately 250,000 barrels per day. Alon is a leading producer of asphalt, which it markets through its asphalt terminals predominately in the Western United States. Alon is the largest 7-Eleven licensee in the United States and operates more than 300 convenience stores in Texas and New Mexico. Alon markets motor fuel products under the FINA brand at these locations and at approximately 610 distributor-serviced locations.

This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements in this press release that are not statements of historical fact are forward-looking statements. Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These statements involve risks and uncertainties that could cause actual results to vary materially from expectations expressed in or indicated by the forward-looking statements, including market conditions.  Additional information regarding these and other risks and uncertainties is contained in our prospectus, Annual Report on Form 10-K for the year ended December 31, 2009, and our subsequent filings with the SEC.

Contacts:

Amir Barash, Vice President - IR

Alon USA Energy, Inc.

972-367-3808

Investors: Jack Lascar/Sheila Stuewe

DRG&L / 713-529-6600

Media:  Blake Lewis

Lewis Public Relations

214-635-3020

Ruth Sheetrit

SMG Public Relations

011-972-547-555551

SOURCE Alon USA Energy, Inc.



RELATED LINKS

http://www.alonusa.com