Pacific Ethanol closes credit facility

By Bryan Sims | August 04, 2008
Web exclusive posted August 8, 2008 at 9:03 a.m. CST

Through its marketing subsidiary Kinergy Marketing LLC, Sacramento, Calif.-based Pacific Ethanol Inc. has closed on a $40 million revolving credit facility with Wachovia Capital Finance Corp.

Wachovia Capital Finance Corp. (Western) acted as agent and lender while Wachovia Capital Markets LLC acted as sole lead arranger and bookrunner for the deal.

The credit facility, which matures in three years, replaces a $25 million credit facility between Kinergy and Comerica Inc. that was entered into in August 2007. According to Pacific Ethanol President and Chief Executive Officer Neil Koehler, the company sought the funding to enhance liquidity and keep up with Pacific's rapid growth, which provides substantial working capital that's subject to limitations based on qualifying collateral.

"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 chief executive officer of Pacific Ethanol. "It allows us to ‘weather the storm' of a tough ethanol market."

Founded in 2000, Kinergy engages in the marketing, sale and distribution of ethanol. Based in Davis, Calif., Kinergy serves customers in California, Arizona, Nevada and Oregon.