Pacific Ethanol raises $11 million in public stock offering
For the second time in three months, Pacific Ethanol Inc. raised more than $10 million in a public offering of common stock. Both times, the company raised the desired amount in less than a week.
The latest public stock offering was announced Sept. 20 and priced at 40 cents per unit on Sept. 21. On Sept. 26 it said that it had closed on its public offering of 27.5 million units for gross offering proceeds of $11 million. “The company intends to use the net proceeds from the offering to fully repay its $10 million in senior unsecured notes that are due in April 2013, with the balance to be used for general corporate purposes,” according to a company press release.
The previous public offering of stock closed on July 3 for a total of $12 million with a public offering price of 43 cents per unit. About $10 million of that money was used to purchase 33 percent ownership interests in New PE Holdco LCC, which owns the Pacific Ethanol plants located in Boardman, Ore., Burley, Idaho, Stockton, Calif., and one idled facility in Madera, Calif. By July 19 Pacific Ethanol had closed that acquisition, meaning it had regained majority ownership with 67 percent ownership of the four plants.
Pacific Ethanol filed for Chapter 11 bankruptcy in 2009, followed by a reorganization process. The ethanol production subsidiaries emerged from bankruptcy in June 2010, owned by New PE Holdco and operated and managed by Pacific Ethanol. The company’s subsidiary, Kinergy Marketing LLC, markets ethanol from the Pacific Ethanol plants and other third-party production facilities and another subsidiary, Pacific Ag. Products LLC, markets wet distillers grains.