The company, which markets and produces low-carbon renewable fuels, announced that it priced an underwritten offering of 1.75 million shares of its common stock at a price to the public of $16.00 per share.
Pacific Ethanol is expecting the net offering proceeds from the offering to be approximately $26 million. The company plans to use part of the net proceeds to pay outstanding principal, accrued and unpaid interest owed under terms of its senior unsecured notes.
The offering is expected to close on April 8, 2014.
TheStreet Ratings team rates PACIFIC ETHANOL INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PACIFIC ETHANOL INC (PEIX) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: