Pacific Ethanol entered into long-term amendments to its senior secured notes and to its term loans with CoBank and Compeer Financial for its Pekin and Illinois Corn Processing plants.

“We are pleased to announce that we have finalized agreements with all of our lenders to improve our liquidity and give us the runway to complete our strategic initiatives, the successful conclusion of which will result in an improved balance sheet and a stronger company,” said Neil Koehler, Pacific Ethanol’s president and CEO.

Pacific Ethanol Pekin amended its credit agreement to fully waive prior covenant violations and to defer $10.5 million of scheduled principal payments until the term loan maturity date of August 20, 2021. In addition, Pekin is not required to make scheduled principal payments until September 30, 2020, at which time $3.5 million will be due, with the same amount due quarterly thereafter until maturity.

Illinois Corn Processing amended its credit agreement to defer the scheduled principal payment of $1.5 million, originally due on December 20, 2019, to the maturity date of September 20, 2021. Scheduled principal payments of $1.5 million per quarter will resume March 20, 2020.

“The restructuring of our agreements with our bank lenders and our senior noteholders gives us additional financial flexibility and more importantly, reflects the confidence our stakeholders have in Pacific Ethanol to capitalize on the long-term opportunities for our company in the overall ethanol market,” said Bryon McGregor, Pacific Ethanol’s CFO.

Pacific Ethanol is a producer and marketer of low-carbon renewable fuels and high-quality alcohol products in the U.S.