Pacific Ethanol increases stake in US biorefineries
Pacific Ethanol has entered into an agreement with a group of institutional investors to raise $8 million in financing while acquiring an additional 7% interest in four ethanol production facilities, the company said on Friday.
Of the net proceeds from the financing, $4.6 million will be used for the purchase of the additional 7% ownership interest in New PE Holdco, the owner of the four Pacific Ethanol production facilities with a combined annual production capacity of 200 million gallons.
Upon closing, the company's total ownership interest will increase to 34%, the company said.
On October 6, 2010, the company paid $23.3 million in cash for its initial 20% ownership interest, and on November 29, 2011, the company purchased an additional 7% ownership interest for $4.5 million.
"With the purchase of this additional 7% interest, we continue to further our objective of increasing ownership in these and other production facilities," said Neil Koehler, the company's president and CEO.
"Within a month, we will have increased our total ownership in the Pacific Ethanol Plants from 20% to 34% at values that are favorable compared to both replacement costs and current market,” he added.
The ethanol production facilities are located in Stockton,Calif., Boardman, Ore., and Burley, Idaho. The fourth, in Madera, Calif., is idle.
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