Pacific Ethanol (PEIX) Prices 27.5M Offering at 40c/Unit
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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 it has priced an underwritten public offering of 27.5 million units at a price to the public of $0.40 per unit, for gross offering proceeds of $11.0 million.
The company intends to use the net proceeds from the offering to fully repay its $10.0 million in senior unsecured notes that are due in April 2013, with the balance to be used for general corporate purposes.
Under the terms of the offering, each unit consists of one share of common stock and one warrant to purchase one share of common stock ("Warrant"). The shares of common stock and warrants are immediately separable and will be issued separately. The Warrants are exercisable immediately upon issuance. The Warrants have a 3-year term and an exercise price of $0.59 per share. The Warrants will be certificated, and will be delivered to the investors by physical delivery following the closing. There is no established public trading market for the Warrants and a market is not expected to develop. In addition, Pacific Ethanol has granted the underwriter a 30-day option to purchase up to an additional 4.125 million units to cover over-allotments, if any. The net offering proceeds to Pacific Ethanol from this offering are expected to be approximately $10.1 million, after deducting underwriting discounts and commissions and other estimated offering expenses. The offering is expected to close on or about September 26, 2012, subject to customary closing conditions.
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The company intends to use the net proceeds from the offering to fully repay its $10.0 million in senior unsecured notes that are due in April 2013, with the balance to be used for general corporate purposes.
Under the terms of the offering, each unit consists of one share of common stock and one warrant to purchase one share of common stock ("Warrant"). The shares of common stock and warrants are immediately separable and will be issued separately. The Warrants are exercisable immediately upon issuance. The Warrants have a 3-year term and an exercise price of $0.59 per share. The Warrants will be certificated, and will be delivered to the investors by physical delivery following the closing. There is no established public trading market for the Warrants and a market is not expected to develop. In addition, Pacific Ethanol has granted the underwriter a 30-day option to purchase up to an additional 4.125 million units to cover over-allotments, if any. The net offering proceeds to Pacific Ethanol from this offering are expected to be approximately $10.1 million, after deducting underwriting discounts and commissions and other estimated offering expenses. The offering is expected to close on or about September 26, 2012, subject to customary closing conditions.
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