Pacific Ethanol closes $325M credit line |
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Wed, 28 Feb 2007 22:22
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SACRAMENTO, Calif. (AP) - Pacific Ethanol Inc. said Wednesday it closed on a $325 million senior secured credit facility to finance construction of new ethanol plants.The funds will be used to recapitalize the company's ethanol plant in California and build two more plants in Oregon and Idaho, as well as two plants under development. The financing agreement includes a $300 million loan and a $25 million working capital and letter of credit facility.'We believe that this credit facility provides us with sufficient debt financing for the construction of our first five plants, which will represent over 220 million gallons of annual production by mid-2008,' said Pacific Ethanol Chief Executive Neil Koehler.The company also said the funds will allow it to act as its own construction contractor for the plants, providing for greater design flexibility, shorter time to market and lower cost.WestLB AG acted as the joint lead arranger, sole book manager and administrative agent, and Mizuho Corporate Bank Ltd. acted as joint lead arranger and syndication agent.Pacific Ethanol shares rose 8 cents to close at $16.58 on the Nasdaq Stock Market.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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