SACRAMENTO, Calif., June 10, 2014 (GLOBE NEWSWIRE) -- Pacific Ethanol, Inc. (Nasdaq:PEIX), the leading producer and marketer of low-carbon renewable fuels in the Western United States, announced it has acquired additional term debt of the Pacific Ethanol Plants.
Pacific Ethanol, Inc. (the "Company"), entered into agreements with certain lenders of the Pacific Ethanol Plants to acquire an aggregate of $14.7 million Tranche A-1 Term Loans made to the Pacific Ethanol Plants for a cash payment of $17.0 million. The $2.3 million premium paid over the principal amount of the loans represents approximately a $1.3 million, or 36% discount to the prepayment premiums otherwise payable by the Pacific Ethanol Plants had they elected to prepay the loans prior to maturity. The acquired loans will be eliminated in consolidation, with the premium over the principal amount recorded as a one-time debt extinguishment charge. The Company's net consolidated Plant term debt after eliminations will total $20.5 million.
Neil Koehler, the Company's president and CEO, stated: "We are pleased to further reduce the Company's consolidated debt position with existing cash resources, lowering annualized interest expense by nearly $2.0 million and improving future earnings."
The Company has issued a Form 8-K which describes the transactions in greater detail.
About Pacific Ethanol, Inc.
Pacific Ethanol, Inc. (PEIX) is the leading producer and marketer of low-carbon renewable fuels in the Western United States. Pacific Ethanol also sells co-products, including wet distillers grain ("WDG"), a nutritional animal feed. Serving integrated oil companies and gasoline marketers who blend ethanol into gasoline, Pacific Ethanol provides transportation, storage and delivery of ethanol through third-party service providers in the Western United States, primarily in California, Arizona, Nevada, Utah, Oregon, Colorado, Idaho and Washington. Pacific Ethanol has a 91% ownership interest in PE Op Co., the owner of four ethanol production facilities. Pacific Ethanol operates and manages the four ethanol production facilities, which have a combined annual production capacity of 200 million gallons. These operating facilities are located in Boardman, Oregon, Burley, Idaho, Stockton, California and Madera, California. The facilities are near their respective fuel and feed customers, offering significant timing, transportation cost and logistical advantages. Pacific Ethanol's subsidiary, Kinergy Marketing LLC, markets ethanol from Pacific Ethanol's managed plants and from other third-party production facilities, and another subsidiary, Pacific Ag. Products, LLC, markets WDG. For more information please visit www.pacificethanol.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
With the exception of historical information, the matters discussed in this press release including, without limitation, the ability of Pacific Ethanol to continue as the leading producer and marketer of low-carbon renewable fuels in the Western United States; and the ability of Pacific Ethanol to improve future earnings as a result of the acquisition of the term loans are forward-looking statements and considerations that involve a number of risks and uncertainties. The actual future results of Pacific Ethanol could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, adverse economic and market conditions, including for ethanol and its co-products, and in particular, low-carbon rated ethanol; raw material costs; changes in governmental regulations and policies; 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-K filed with the Securities and Exchange Commission on March 31, 2014 and in Pacific Ethanol's Form 10-Q filed with the Securities and Exchange Commission on May 9, 2014.
CONTACT: Company IR Contact: Pacific Ethanol, Inc. 916-403-2755 Investorrelations@pacificethanol.com IR Agency Contact: Becky Herrick LHA 415-433-3777 Media Contact: Paul Koehler Pacific Ethanol, Inc. 916-403-2790 email@example.com