Pacific Ethanol Reduces Net Consolidated Plant Term Debt to $20.5M
June 10 2014 - 8:30AM
Pacific Ethanol, Inc. (Nasdaq:PEIX), the leading
producer and marketer of low-carbon renewable fuels in the Western
United States, announced it has acquired additional term debt of
the Pacific Ethanol Plants.
Pacific Ethanol, Inc. (the "Company"), entered into agreements
with certain lenders of the Pacific Ethanol Plants to acquire an
aggregate of $14.7 million Tranche A-1 Term Loans made to the
Pacific Ethanol Plants for a cash payment of $17.0 million. The
$2.3 million premium paid over the principal amount of the loans
represents approximately a $1.3 million, or 36% discount to the
prepayment premiums otherwise payable by the Pacific Ethanol Plants
had they elected to prepay the loans prior to maturity. The
acquired loans will be eliminated in consolidation, with the
premium over the principal amount recorded as a one-time debt
extinguishment charge. The Company's net consolidated Plant term
debt after eliminations will total $20.5 million.
Neil Koehler, the Company's president and CEO, stated: "We are
pleased to further reduce the Company's consolidated debt position
with existing cash resources, lowering annualized interest expense
by nearly $2.0 million and improving future earnings."
The Company has issued a Form 8-K which describes the
transactions in greater detail.
About Pacific Ethanol, Inc.
Pacific Ethanol, Inc. (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. These operating
facilities are located in Boardman, Oregon, Burley, Idaho,
Stockton, California and Madera, California. 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; and the ability of Pacific Ethanol to improve future
earnings as a result of the acquisition of the term loans 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, including for
ethanol and its co-products, and in particular, low-carbon rated
ethanol; raw material costs; 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 filed with the Securities and Exchange
Commission on March 31, 2014 and in Pacific Ethanol's Form 10-Q
filed with the Securities and Exchange Commission on May 9,
2014.
CONTACT: Company IR Contact:
Pacific Ethanol, Inc.
916-403-2755
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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