Pacific Ethanol subsidiaries expand, extend credit facility, cut costs

By Wendy Van Sickle

Columbus, Ohio, July 6 – Pacific Ethanol, Inc.’s subsidiaries Kinergy Marketing LLC and Pacific Ag. Products, LLC expanded their joint credit facility by $45 million, lowered its interest rate and extended its maturity by four years on Wednesday, according to an 8-K filed with the Securities and Exchange Commission.

Maximum credit under the credit facility has been increased to $75 million from $30 million.

The new interest rate ranges from Libor plus 175 basis points to Libor plus 275 bps, depending on average amounts available for additional borrowings under the facility for the prior quarter. Interest previously ranged from Libor plus 200 bps to Libor plus 300 bps.

The facility’s unused line fee was reduced to 25 bps to 37.5 bps annually, depending on daily principal balance for the previous month.

The facility’s maturity has been extended to Dec. 31, 2020 from Dec. 31, 2016.

An accordion allows the borrowers to raise the size of the facility to a maximum of $100 million.

Wells Fargo Capital Finance, LLC is the lenders’ agent.

Pacific Ethanol is a Fresno, Calif., owner and operator of ethanol plants.

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