Sacramento-based Pacific Ethanol Inc., a producer and marketer of low-carbon renewable fuels, says it has entered into agreements to raise up to $14 million to reduce debt and increase ownership interest in processing facilities.
The plan calls for two installments: issuing $6 million in subordinated convertible Series A notes, and, pending stockholder approval, an additional $8 million in subordinated convertible Series B notes.
PEI aims to purchase outstanding debt due in June, retire debt due in June 2016 and prepay a portion of its senior unsecured notes, all designed to lower debt costs and enhance cash available.
New York-based Lazard Capital Markets LLC, which has an office in San Francisco, is the sole placement agent for the Series A and B transactions.
More details can be found in the firm's public Form 8-K filing with the Securities and Exchange Commission.
Earlier this week, PEI cited unfavorable industry conditions and lower fuel sales prices as contributing to a 2012 loss of $20.3 million.
Call The Bee's Mark Glover, (916) 321-1184.