Pacific Ethanol's Debtors Agree to 9% Interest on Overdue Loan

Sacramento-based renewable fuel company Pacific Ethanol Inc. got its overdue debt of $63.2 million extended with an interest rate of about 9%, according to documents filed with the Securities and Exchange Commission.

 

Since March, Pacific Ethanol (Nasdaq: PEIX) has been working to refinance its debt, which came due and was extended several times this year. The company announced a two-year reprieve earlier this week.

 

Sacramento Business Journal reports that the company is the Sacramento region's largest publicly traded company by revenue.

 

To get the debt extended, Pacific Ethanol had to get eight separate shareholders to sign off on the terms, including five funds managed by New York-based BlackRock Financial Management Inc., a subsidiary of BlackRock Inc., and Rye, New York-based Candlewood Investment Group LP, according to a filing with the SEC.

 

The debt stems from Pacific Ethanol's $76 million purchase of its second ethanol plant in Pekin, Illinois. In 2017, Pacific Ethanol bought the former Illinois Corn Processing LLC plant from SEACOR Holdings Inc. and MGPI Processing Inc. The plant can produce 90 million gallons of ethanol annually for fuel or for beverage production. The plant is adjacent to another biorefinery that had already been owned and operated by Pacific Ethanol.

 

Video: Better Farming Ontario - Proudly Serving the World's Best Farmers for Over 25 Years

For over 25 years, Ontario Federation of Agriculture members have trusted Better Farming as a source for information to help them farm profitably, with insights and best practices for cash cropping, soil health, pest and weed control, livestock, and farm business management.

Watch this video to learn more about Better Farming and its relationship with producers across Ontario.

Message from Better Farming:

To our OFA farming readers, thank you for your time and your trust, for 25 years now. We look forward to continuing the journey with you.