Pacific Ethanol files Annual Report and closes Cascade Financing Deal
Pacific Ethanol Inc. (NASDAQ: PEIX) filed its annual report and also closed the financing deal with Bill Gates private equity firm Cascade Investments LLC.
Following is from the SEC filling:
On April 13, 2006, we issued to one investor, Cascade Investment, L.L.C.,
or Cascade, 5,250,000 shares of our Series A Cumulative Redeemable Convertible
Preferred Stock, or Series A Preferred Stock, at a price of $16.00 per share,
for an aggregate purchase price of $84.0 million. Of the $84.0 million aggregate
purchase price, $4.0 million was paid to us at closing and $80.0 million was
deposited into a restricted cash account and will be disbursed in accordance
with the Deposit Agreement described below. We are entitled to use the initial
$4.0 million of proceeds for general working capital purposes and must use the
remaining $80.0 million for the construction or acquisition of one or more
ethanol production facilities.
The $34 Million debt financing deal with Hudson and Comerica bank closed as well:
On April 13, 2006, PEI California’s second-tier subsidiary, Pacific
Ethanol Madera LLC, or PEI Madera, entered into a Construction and Term Loan
Agreement, or Construction Loan, with Hudson United Capital, or Hudson, and
Comerica Bank, or Comerica. This debt financing, or Debt Financing, is in the
aggregate amount of up to approximately $34.0 million and will provide a portion
of the total financing necessary for the completion of our ethanol production
facility in Madera County, or Project. The Project cost is not to exceed
approximately $65.1 million, or Project Cost.
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