Kinergy (SIN:5JT)

Back to 5JT
Pacific Ethanol, Inc. Extends and Increases Kinergy's Credit Facility With Wells Fargo

SACRAMENTO, Calif., May 8, 2012 (GLOBE NEWSWIRE) -- Pacific Ethanol, Inc. (Nasdaq:PEIX), the leading marketer and producer of low-carbon renewable fuels in the Western United States, announced it has extended the credit facility of its subsidiary, Kinergy Marketing LLC. The renewal with Wells Fargo Capital Finance, LLC extends the term for an additional two years, lowers the stated interest rate by 1.00% and increases the maximum amount of the credit facility from up to $35 million to up to $40 million, which includes a $10 million accordion feature allowing an increase in the amounts available for borrowing, subject to certain conditions, to the full $40 million. The prior credit facility included an accordion feature of $5 million. In addition, the borrowing base of the credit facility includes the accounts of Pacific Ag. Products, LLC ("PAP"), the company's feed marketing subsidiary. The credit facility matures on December 31, 2015.

Neil Koehler, the company's president and CEO, stated, "The introduction of advanced ethanol blends, favorable ethanol blend economics and supportive government policies present new growth opportunities for Pacific Ethanol. The increased line of credit supports these growth opportunities while lowering our cost of capital. With the additional borrowing base from PAP, we are able to better utilize our feed business to add value to the consolidated enterprise."

Further details of the credit facility are available 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:PEIX) 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, Arizona, Nevada, Utah, Oregon, Colorado, Idaho and Washington. Pacific Ethanol has a 34% 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.

The Pacific Ethanol, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5940

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 utilize the full amounts available for borrowing under the credit facility, which is subject to a number of factors and conditions, including the expansion of the current $30 million commitment to up to $40 million at the discretion of the lender; and growth opportunities that may result from advanced ethanol blends, blend economics and government policies 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; 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 8, 2012.

CONTACT: Company IR Contact:
         Pacific Ethanol, Inc.
         916-403-2755
         866-508-4969
         Investorrelations@pacificethanol.net
         
         IR Agency Contact:
         Becky Herrick
         LHA
         415-433-3777
         
         Media Contact:
         Paul Koehler
         Pacific Ethanol, Inc.
         503-235-8241
         paulk@pacificethanol.net

company logo

Back to 5JT
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki