Pacific Ethanol (PEIX) Closes on Acquisition of Additional Interest in New PE Holdco
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Pacific Ethanol, Inc. (Nasdaq: PEIX), the leading marketer and producer of low-carbon renewable fuels in the Western United States, announced that it closed its acquisition of an additional 33% ownership interest in New PE Holdco LLC, the owner of the Pacific Ethanol plants. The acquisition was previously announced on June 27, 2012.
Neil Koehler, the company's president and CEO, stated: "With the closing of this transaction, we have regained majority ownership over the Pacific Ethanol plants and have significantly improved our liquidity position. This important accomplishment enables us to direct strategic investments in enhancing the financial performance of our assets, while reducing our overhead costs."
The company now holds a 67% ownership interest in New PE Holdco LLC. The aggregate purchase price of the 33% ownership interest was $20.0 million. On July 13, 2012, the company paid $10.0 million in cash and issued $10.0 million in aggregate principal amount of senior unsecured notes to the sellers. The notes are due April 13, 2013 and accrue interest at a rate of 5% per annum.
The amendment to the Pacific Ethanol plants' credit agreement extends the maturity date in respect of $46.7 million of the combined term debt and revolving credit facility from June 25, 2013 to June 30, 2016. In addition, certain lenders increased the amount of the plants' $35.0 million revolving credit facility to up to $40.0 million to provide an additional $5.0 million in immediate liquidity for the plants' operations.
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Neil Koehler, the company's president and CEO, stated: "With the closing of this transaction, we have regained majority ownership over the Pacific Ethanol plants and have significantly improved our liquidity position. This important accomplishment enables us to direct strategic investments in enhancing the financial performance of our assets, while reducing our overhead costs."
The company now holds a 67% ownership interest in New PE Holdco LLC. The aggregate purchase price of the 33% ownership interest was $20.0 million. On July 13, 2012, the company paid $10.0 million in cash and issued $10.0 million in aggregate principal amount of senior unsecured notes to the sellers. The notes are due April 13, 2013 and accrue interest at a rate of 5% per annum.
The amendment to the Pacific Ethanol plants' credit agreement extends the maturity date in respect of $46.7 million of the combined term debt and revolving credit facility from June 25, 2013 to June 30, 2016. In addition, certain lenders increased the amount of the plants' $35.0 million revolving credit facility to up to $40.0 million to provide an additional $5.0 million in immediate liquidity for the plants' operations.
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