FIMI bought Alon USA preferred shares at a conversion rate of $6.74 per share. The preferred shares also received an 8.5% dividend rate. FIMI has sold $40 million worth of Alon USA shares to date, and its remaining stake is currently worth $13 million.
FIMI CEO Ishai Davidi said, "FIMI has made its 37th sale with the sale of its investment in Alon USA. FIMI made the investment on the basis of its confidence in the management of the company headed by David Wiessman. The investment was made around the time of the crisis in the company due to the explosion at a US refinery. The company has returned to growth and published strong results, thanks to its good management."
Davidi added, "Alon USA is an example of a successful mezzanine investment. Investments of this kind, which account for about 15% of FIMI's total investment, are financial investments and the fund realizes them after achieving a worthwhile return."
Alon USA's share price closed at $13.34 on the New York Stock Exchange yesterday, giving a market cap of $750 million.
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