- Enters into agreements to purchase an additional 13% interest in the plants, increasing its ownership interest to 80%
- Agrees to purchase $21.54 million in plant debt to be extended to 2016
- Secures maturity extension of revolving credit line for plants to 2015
- Enters into agreement to issue $22.2 million in senior unsecured notes to finance purchases
SACRAMENTO, Calif., Dec. 19, 2012 (GLOBE NEWSWIRE) -- Pacific Ethanol, Inc. (Nasdaq:PEIX), the leading marketer and producer of low-carbon renewable fuels in the Western United States, has entered into agreements to increase its ownership interest in the plants and improve their debt position.
Pacific Ethanol has entered into an agreement to purchase $21.54 million of Pacific Ethanol plant secured term debt and to extend the maturity date of the purchased term debt from June 2013 to June 2016. The agreement also provides for the extension of the maturity of the $10.0 million secured revolving debt facility for the plants from June 2013 to June 2015. Further, at closing, the company will purchase an additional 13% ownership interest in New PE Holdco, LLC for $1.3 million, increasing the company's equity ownership to 80%. To fund these transactions, the company entered into an agreement with certain institutional investors to issue $22.2 million of senior unsecured notes, and five-year warrants to purchase up to 25.6 million shares of the company's common stock. The senior unsecured notes will accrue interest at the rate of 5.0% per annum, subject to adjustment, with interest payments commencing March 30, 2013. Interest on the notes is payable in cash or shares of the company's common stock, at the election of the company, provided certain conditions are met. The notes will mature on March 30, 2016. The warrants will have an exercise price of $0.52 per share, equal to a 58% premium to the per share closing price of the company's common stock on the date immediately preceding the signing of the Securities Purchase Agreement.