Pacific Ethanol Provides Update on Its Senior Convertible Notes
Pacific Ethanol, Inc. (Nasdaq: PEIX) provided an update on its senior convertible notes.
The principal balance of the notes have declined at rates faster than anticipated under the scheduled repayment terms. The aggregate unpaid principal balance of the notes, originally $35.0 million as of October 6, 2010, has declined from $20.3 million as of June 30, 2011 to $10.5 million as of September 1, 2011. To date, a total of $24.2 million in principal has been converted into 28.7 million common shares, at an average conversion price of $0.84 per share.
As previously announced, Pacific Ethanol elected to make its September 1, 2011 installment payment in cash. As a result of additional voluntary conversions by certain note holders, the September payment was reduced from $2.4 million to $400,000. In addition, on September 1, 2011, Pacific Ethanol elected to make its October 3, 2011 installment payment in cash, which is currently estimated to be $2.2 million. As of September 1, 2011, Pacific Ethanol had approximately 44.1 million common shares outstanding.
