Pacific Ethanol refinances term debt, acquires grain elevator stake

|By:, SA News Editor

Pacific Ethanol (PEIX +4.7%) is higher after reaching an agreement to refinance $155M in term debt it says will reduce interest costs by $8M/year and total debt outstanding by more than $12M.

PEIX says it won a new $64M five-year term amortizing loan and a $32M revolving line of credit secured by its Pekin assets, and will obtain $55M from a three-year senior note offering secured by its ownership interest in its western assets.

PEIX also will form a new company with Aurora Cooperative Elevator in which it will contribute its Aurora plant assets with ACEC contributing its Aurora west grain elevator, loop track, related land and other assets; PEIX also will sell a 14% interest in pal to ACEC for $30M.

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