Friday August 1, 2008
Kinergy Marketing Closes $40 Million Revolving Credit Facility
Sacramento, California, August 1, 2008—Pacific Ethanol, Inc. (NASDAQ GM: PEIX) today announced that its wholly-owned ethanol marketing subsidiary, Kinergy Marketing LLC, has closed a new revolving credit facility with Wachovia Capital Finance Corporation (Western). The credit facility, which matures in three years, provides Kinergy up to $40 million of working capital, subject to limitations based on qualifying collateral. The credit facility is secured by inventory and receivables, and is guaranteed by Pacific Ethanol, Inc. The credit facility replaces the $25 million credit facility between Kinergy and Comerica Bank entered into in August 2007.
Kinergy, a leading ethanol marketing company, engages in the marketing and distribution of ethanol primarily in the Western US on behalf of third parties and the production of its parent, Pacific Ethanol, Inc. and its subsidiaries.
Wachovia Capital Finance Corporation (Western) acted as agent and lender, Wachovia Capital Markets, LLC acted as sole lead arranger and bookrunner.
“We are pleased to announce this financing resource, as it enhances our liquidity and supports the continued growth of our marketing business,” said Neil Koehler, President and CEO.
- Investor Relations
- Pacific Ethanol, Inc.
- (866) 508-4969
- Joseph Hansen
- Pacific Ethanol, Inc
- (916) 403-2123
About Pacific Ethanol, Inc.
Pacific Ethanol is the largest West Coast-based marketer and producer of ethanol. Pacific Ethanol has ethanol plants in Madera, California; Boardman, Oregon; and Burley, Idaho and has an additional plant under construction in Stockton, California. Pacific Ethanol also owns a 42% interest in Front Range Energy, LLC which owns an ethanol plant in Windsor, Colorado. Central to Pacific Ethanol’s growth strategy is its destination business model, whereby each respective ethanol plant achieves lower process and transportation costs by servicing local markets for both fuel and feed. Pacific Ethanol’s goal is to achieve 220 million gallons per year of ethanol production capacity in 2008 and to increase total production capacity to 420 million gallons per year in 2010. In addition, Pacific Ethanol is working to identify and develop other renewable fuel technologies, such as cellulose-based ethanol production and bio-diesel.
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 are forward-looking statements 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, the ability of Pacific Ethanol to successfully and timely complete, in a cost-effective manner, construction of its ethanol plants under construction; the ability of Pacific Ethanol to obtain all necessary financing to complete the construction of its other planned ethanol production facilities; the ability of Pacific Ethanol to timely complete its ethanol plant build-out program and to successfully capitalize on its internal growth initiatives; the ability of Pacific Ethanol to operate its plants at their planned production capacities; the price of ethanol relative to the price of gasoline; the effect of federal and state governmental regulations on the demand for ethanol; and the factors contained in the “Risk Factors” section of Pacific Ethanol’s Form 10-K filed with the Securities and Exchange Commission on March 27, 2008.