Pacific Ethanol, Inc. Completes $84 Million Equity Investment by Cascade Investment, L.L.C. and $34 Million Debt Financing by Hudson United Bank and Comerica Bank, and Files 10-KSB
09:37 EDT Monday, April 17, 2006
FRESNO, Calif., April 17 /PRNewswire-FirstCall/ -- Pacific Ethanol, Inc. (Nasdaq: PEIX) announced today that it has completed the offering and sale of 5,250,000 shares of Series A Cumulative Redeemable Convertible Preferred Stock for $84 million to Cascade Investment, L.L.C. The shares of preferred stock are convertible into shares of common stock at an initial conversion ratio of two shares of common stock for each share of preferred stock which, if converted immediately, would result in the issuance of 10,500,000 shares of common stock. Pacific Ethanol also announced today that it has completed a debt financing for up to a total of approximately $34 million with Hudson United Bank, a division of TD BankNorth, and Comerica Bank.
A portion of the proceeds from the preferred stock offering and all of the proceeds from the debt financing will be used to complete construction of Pacific Ethanol's ethanol production plant in Madera County, California. This plant is currently under construction and is scheduled to be completed and begin operations in the fourth quarter of 2006. The remaining portion of the proceeds from the preferred stock offering will be used to pay a portion of the costs of construction of other ethanol plants on the West Coast. Pacific Ethanol has announced plans to construct and operate five ethanol plants in the Western United States by the end of 2008 with an expected combined installed annual ethanol capacity of at least 200 million gallons.
"Closing these debt and equity financings solidifies our near term growth strategy of building five ethanol plants on the West Coast," said Neil Koehler, Pacific Ethanol's CEO. "We are honored to partner with a strong strategic investor like Cascade Investment and established lenders like Hudson United Bank and Comerica Bank," added Koehler.
Pacific Ethanol also announced today that it has filed its Form 10-KSB for the year ended December 31, 2005. A copy of the Form 10-KSB may be found on the Securities and Exchange Commission's website at www.sec.gov
and on the Company's website at www.pacificethanol.net