Pacific Ethanol Refinances $47.5 Million in Secured Promissory Notes
September 18 2017 - 7:30AM
Pacific Ethanol, Inc. (NASDAQ:PEIX), a leading
producer and marketer of low-carbon renewable fuels in the United
States, has refinanced $47.5 million in promissory notes related to
its July 3, 2017 acquisition of Illinois Corn Processing (ICP). To
repay the notes, the company used $6 million of cash on hand and
$42 million in proceeds from new term and revolving debt financing
with CoBank, ACB.
Neil Koehler, Pacific Ethanol’s president and
CEO, stated: “With the acquisition of ICP in July 2017, we added
our ninth production facility, bringing our combined annual
production capacity to 605 million gallons and diversifying our
sales with high quality beverage and industrial alcohol products.
In conjunction with the acquisition, we stated our intention to
quickly refinance the associated short-term promissory notes. With
the CoBank term loan and revolving credit facility, we further
strengthen our balance sheet with lower cost and longer-term
debt.”
Financing TermsPacific Ethanol
entered into two separate financing agreements with CoBank: a $24
million term debt financing and an $18 million revolving debt
facility. The $24 million term debt facility matures in September
2021 and provides for quarterly amortizing principal payments of
$1.5 million each beginning December 2017. The revolving debt
facility matures in September 2022 and does not require amortizing
principal payments. Principal repaid under the revolving debt
facility may, subject to customary conditions, be reborrowed prior
to maturity. The term and revolving debt facilities bear interest
at a rate equal to the 30-day LIBOR, plus 3.75%.
About Pacific Ethanol,
Inc.Pacific Ethanol, Inc. (PEIX) is a leading producer and
marketer of low-carbon renewable fuels and high-quality alcohol
products in the United States. Pacific Ethanol owns and operates
nine production facilities, four in the Western states of
California, Oregon and Idaho, and five in the Midwestern states of
Illinois and Nebraska. The plants have a combined production
capacity of 605 million gallons per year, produce over one million
tons per year of ethanol co-products – on a dry matter basis – such
as wet and dry distillers grains, wet and dry corn gluten feed,
condensed distillers solubles, corn gluten meal, corn germ, corn
oil, distillers yeast and CO2. Pacific Ethanol markets and
distributes fuel-grade ethanol, high-quality alcohol products and
co-products domestically and internationally. Pacific Ethanol’s
subsidiary, Kinergy Marketing LLC, markets all ethanol and alcohol
products for Pacific Ethanol’s plants as well as for third parties,
approaching one billion gallons of ethanol marketed annually based
on historical volumes. Pacific Ethanol’s subsidiary, Pacific Ag.
Products LLC, markets wet and dry distillers grains. For more
information please visit www.pacificethanol.com.
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995Statements and
information contained in this communication that refer to or
include the Pacific Ethanol’s estimated or anticipated future
results or other non-historical expressions of fact are
forward-looking statements that reflect Pacific Ethanol’s current
perspective of existing trends and information as of the date of
the communication. Forward looking statements generally will be
accompanied by words such as “anticipate,” “believe,” “plan,”
“could,” “should,” “estimate,” “expect,” “forecast,” “outlook,”
“guidance,” “intend,” “may,” “might,” “will,” “possible,”
“potential,” “predict,” “project,” or other similar words, phrases
or expressions. Such forward-looking statements include, but are
not limited to, market conditions, including the supply of and
domestic and international demand for ethanol and co-products;
statements about the benefits of Pacific Ethanol’s new term and
revolving debt facilities with CoBank and its refinancing of the
ICP promissory notes; and Pacific Ethanol’s other plans,
objectives, expectations and intentions. It is important to note
that Pacific Ethanol’s plans, objectives, expectations and
intentions are not predictions of actual performance. Actual
results may differ materially from Pacific Ethanol’s current
expectations depending upon a number of factors affecting Pacific
Ethanol’s business. These factors include, among others, adverse
economic and market conditions, including for ethanol and its
co-products; export conditions and international demand for ethanol
and co-products; fluctuations in the price of and demand for oil
and gasoline; raw material costs, including ethanol production
input costs and changes in governmental regulations and policies.
These factors also include, among others, the inherent uncertainty
associated with financial and other projections; the anticipated
size of the markets and continued demand for Pacific Ethanol’s
products; the impact of competitive products and pricing; the risks
and uncertainties normally incident to the ethanol production and
marketing industries; changes in generally accepted accounting
principles; successful compliance with governmental regulations
applicable to Pacific Ethanol’s facilities, products and/or
businesses; changes in laws and regulations; the loss of key senior
management or staff; the ability of Pacific Ethanol meet the
conditions to reborrowing under its revolving credit facility with
CoBank; 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-Q filed with the Securities and Exchange
Commission on August 9, 2017.
Company IR Contact: |
|
IR Agency Contact: |
|
Media Contact: |
Pacific
Ethanol, Inc. |
|
Becky
Herrick |
|
Paul
Koehler |
916-403-2755 |
|
LHA |
|
Pacific Ethanol, Inc. |
Investorrelations@pacificethanol.com |
|
415-433-3777 |
|
916-403-2790 |
|
paulk@pacificethanol.com |
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