Pacific Ethanol secures financing for five ethanol plants
Pacific Ethanol, Inc. has signed a commitment letter providing for up to $325 million of senior secured credit. The loan facility will include up to $300 million in a senior secured construction and term debt facility, which will be used to recapitalize the Company's Madera California ethanol plant, to provide take-out financing on the completion of the Company's Oregon ethanol plant and to provide both construction and term financing for three additional ethanol plants that the Company has under development. In addition, it will include a working capital and letter of credit facility of up to $25 million.
CEO Neil Koehler observed that, "This facility will give Pacific Ethanol full financing to exceed the first phase of our growth plan, which has been to attain annual production capacity of 220 million gallons per year by the middle of 2008. We will break ground on the next 3 plants by the end of the first quarter of 2007. We continue to execute well on our business plan to be the leading producer of ethanol in the Western United States."