Pacific Ethanol, Inc. Closes $28.0 Million Public Offering of Common Stock
April 09 2014 - 8:30AM
Pacific Ethanol, Inc. (Nasdaq:PEIX), the leading
producer and marketer of low-carbon renewable fuels in the Western
United States, announced that on April 8, 2014 it closed its
previously announced underwritten public offering of 1,750,000
shares of its common stock at a public offering price of $16.00 per
share, for gross offering proceeds of $28.0 million.
The net offering proceeds to Pacific Ethanol are expected to be
approximately $26.0 million after deducting underwriting discounts
and commissions and other estimated offering expenses. The company
intends to use the net proceeds from the offering to fully repay
the approximately $0.5 million in outstanding principal and accrued
and unpaid interest owed under the terms of its senior unsecured
notes, and will use the remaining balance of the net proceeds from
the offering for general corporate purposes, including
strengthening its balance sheet.
Neil Koehler, the company's president and CEO, stated "The
proceeds from this capital raise strengthen our balance sheet by
eliminating our senior unsecured debt, reducing our interest
expense and providing additional cash reserves to support
profitable growth."
Lazard Capital Markets LLC and Cowen and Company, LLC acted as
the joint book-running managers for the offering, and Craig-Hallum
Capital Group LLC acted as the co-manager.
The shares of common stock were sold pursuant to effective
registration statements on Form S-3, together with a prospectus
supplement and accompanying base prospectus, previously filed with
the Securities and Exchange Commission.
About Pacific Ethanol, Inc.
Pacific Ethanol, Inc. (Nasdaq:PEIX) is the leading producer and
marketer of low-carbon renewable fuels in the Western United
States. Pacific Ethanol also sells co-products, including wet
distillers grain ("WDG"), a nutritional animal feed. Serving
integrated oil companies and gasoline marketers who blend ethanol
into gasoline, Pacific Ethanol provides transportation, storage and
delivery of ethanol through third-party service providers in the
Western United States, primarily in California, Arizona, Nevada,
Utah, Oregon, Colorado, Idaho and Washington. Pacific Ethanol has a
91% ownership interest in PE Op Co., the owner of four ethanol
production facilities. Pacific Ethanol operates and manages the
four ethanol production facilities, which have a combined annual
production capacity of 200 million gallons. The facilities in
operation are located in Boardman, Oregon, Burley, Idaho and
Stockton, California, and one facility is located in Madera,
California that is currently being restarted. The facilities are
near their respective fuel and feed customers, offering significant
timing, transportation cost and logistical advantages. Pacific
Ethanol's subsidiary, Kinergy Marketing, LLC, markets ethanol from
Pacific Ethanol's managed plants and from other third-party
production facilities, and another subsidiary, Pacific Ag.
Products, LLC, markets WDG. For more information please visit
www.pacificethanol.com.
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995
With the exception of historical information, the matters
discussed in this press release including, without limitation, the
ability of Pacific Ethanol to continue as the leading producer and
marketer of low-carbon renewable fuels in the Western United
States, are forward-looking statements and considerations that
involve a number of risks and uncertainties. The actual future
results of Pacific Ethanol could differ from those statements.
Factors that could cause or contribute to such differences include,
but are not limited to, adverse economic and market conditions;
changes in governmental regulations and policies; and other events,
factors and risks previously and from time to time disclosed in
Pacific Ethanol's filings with the Securities and Exchange
Commission including, specifically, those factors set forth in the
"Risk Factors" section contained in Pacific Ethanol's Form 10-K and
in the final prospectus supplement relating to the proposed
offering filed with the Securities and Exchange Commission on March
31, 2014 and April 3, 2014, respectively.
CONTACT: Company IR Contact:
Pacific Ethanol, Inc.
916-403-2755
866-508-4969
Investorrelations@pacificethanol.com
IR Agency Contact:
Becky Herrick
LHA
415-433-3777
Media Contact:
Paul Koehler
Pacific Ethanol, Inc.
916-403-2790
paulk@pacificethanol.com
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