Loading...
Loading...
Pacific Ethanol, Inc.
, the leading marketer and producer of low-carbon renewable fuels
in the Western United States, has entered into agreements to increase its
ownership interest in the plants and improve their debt position.
Pacific Ethanol has entered into an agreement to purchase $21.54 million of
Pacific Ethanol plant secured term debt and to extend the maturity date of the
purchased term debt from June 2013 to June 2016. The agreement also provides
for the extension of the maturity of the $10.0 million secured revolving debt
facility for the plants from June 2013 to June 2015. Further, at closing, the
company will purchase an additional 13% ownership interest in New PE Holdco,
LLC for $1.3 million, increasing the company's equity ownership to 80%. To
fund these transactions, the company entered into an agreement with certain
institutional investors to issue $22.2 million of senior unsecured notes, and
five-year warrants to purchase up to 25.6 million shares of the company's
common stock. The senior unsecured notes will accrue interest at the rate of
5.0% per annum, subject to adjustment, with interest payments commencing March
30, 2013. Interest on the notes is payable in cash or shares of the company's
common stock, at the election of the company, provided certain conditions are
met. The notes will mature on March 30, 2016. The warrants will have an
exercise price of $0.52 per share, equal to a 58% premium to the per share
closing price of the company's common stock on the date immediately preceding
the signing of the Securities Purchase Agreement.
Loading...
Loading...
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in