SACRAMENTO, Calif., June 13, 2011 (GLOBE NEWSWIRE) -- Pacific Ethanol, Inc. (Nasdaq:PEIXD),the leading marketer and producer of low-carbon renewable fuels in the Western United States, announced that it has increased from $20 million to $30 million the credit facility of its subsidiary, Kinergy Marketing LLC with Wells Fargo Capital Finance, LLC. Subject to certain conditions, the credit facility has an accordion feature that provides the company with the ability to increase the facility to $35 million. The maturity date on the credit facility remains unchanged at December 31, 2013.
Neil Koehler, PEI's president and CEO, stated, "Our total gallons sold have increased rapidly and consistently over the last seven quarters at an annualized compound growth rate of 66%. This growth continues as our unique distribution business enables us to increase our market share in the Western United States. Our expanded credit facility lowers our cost of capital and clearly demonstrates our lender's confidence in our growth strategy."
Additional terms and details of the credit facility are more particularly described in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission today.
About Pacific Ethanol, Inc.
Pacific Ethanol, Inc. (Nasdaq:PEIXD) is the leading marketer and producer 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, Nevada, Arizona, Oregon, Colorado, Idaho and Washington. Pacific Ethanol has a 20% ownership interest in New PE Holdco LLC, 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. The facilities in operation are located in Boardman, Oregon, Burley, Idaho and Stockton, California, and one idled facility is located in 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.net.
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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 marketer and producer of low-carbon renewable fuels in the Western United States; the ability of Pacific Ethanol to effectively lower its cost of capital; and the ability of Kinergy to access and utilize the full amounts available under its credit facility, which is subject to various eligibility requirements and other limitations, 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. Pacific Ethanol refers you to the "Risk Factors" section contained in its most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2011 and in its most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 13, 2011.
CONTACT: IR Agency Contact: Becky Herrick Lippert / Heilshorn & Assoc. 415-433-3777 Investorrelations@pacificethanol.net Company IR Contact Pacific Ethanol, Inc. 916-403-2755 866-508-4969 Media Contact: Paul Koehler Pacific Ethanol, Inc. 503-235-8241 firstname.lastname@example.org