This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Pacific Ethanol Signs Agreements To Raise Up To $14.0 Million To Reduce Plant Debt And Acquire Additional Plant Ownership Interest

  • Enters into agreements to issue up to $14.0 million in subordinated convertible notes and acquire an additional 3% Plant interest, increasing ownership to 83%
  • $6.0 million of the financing to close within two business days subject to satisfaction of closing conditions and $8.0 million of the financing to close in June 2013 subject to satisfaction of closing conditions and stockholder approval
  • Net proceeds to be used to:
  • Purchase $6.6 million of Plant debt maturing in June 2013
  • Acquire an additional 3% Plant ownership interest
  • Purchase and retire $3.5 million of Plant debt maturing in 2016
  • Provide $2.0 million in cash reserves to Pacific Ethanol
  • Prepay a portion of senior unsecured notes
  • Increase plant liquidity and reduce interest expense

SACRAMENTO, Calif., March 28, 2013 (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 raise up to $14.0 million in two installments by issuing $6.0 million in subordinated convertible Series A notes, together with Series A Warrants and Series B Warrants ("Tranche A") and, subject to stockholder approval, an additional $8.0 million in subordinated convertible Series B notes ("Tranche B"). The company has also entered into agreements to, among other things, purchase certain outstanding debt currently due in June 2013 ("June Debt"), retire debt due in June 2016 ("2016 Debt") and prepay a portion of its senior unsecured notes ("Senior Notes"), while lowering overall debt costs and improving cash available to Pacific Ethanol.

Both the Tranche A and B notes (together, the "Notes") will mature one year from the issuance of the Tranche A notes and will accrue interest at 5.00% per annum from their respective dates of issuance. The Notes may be repaid, at the company's election, in either cash or, subject to certain conditions, shares of the company's common stock. The Notes are also convertible from time to time, at the election of the holders, into shares of the company's common stock at a conversion price of $1.00 per share. Warrants to purchase an aggregate of 27,594,000 shares of the company's common stock will be issued with the Notes and will have an initial exercise price of $0.52 per share, representing a 50% premium to the closing bid price of the company's common stock on March 27, 2013. The Series A Warrants will have a term of two years from issuance and will be exercisable beginning one year from issuance. The Series B Warrants to purchase 15,768,000 shares of Common Stock are subject to stockholder approval of the Tranche B Notes, will have a term of two years from such stockholder approval and will be exercisable beginning one year from such stockholder approval. If such approval is not obtained, such warrants will not be exercisable and will expire. The Notes and the Supplemental Indentures relating to the Notes will include certain covenants, including, among other, the punctual payment of principal and interest, certain limitations on the incurrence of indebtedness, restrictions on the redemption of outstanding securities, restrictions on the transfer of assets and restrictions on the existence of liens on the company's assets. 

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,374.76 +23.38 0.14%
S&P 500 1,951.13 +2.27 0.12%
NASDAQ 4,733.4970 -16.4820 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs