Pacific Ethanol, Inc., a marketer and producer of low-carbon renewable fuels in the Western United States, announced it has extended the credit facility of its subsidiary, Kinergy Marketing. The renewal with Wells Fargo Capital Finance extends the term for an additional two years, lowers the stated interest rate by 1.00% and increases the maximum amount of the credit facility from up to $35 million to up to $40 million, which includes a $10 million accordion feature allowing an increase in the amounts available for borrowing, subject to certain conditions, to the full $40 million.
The prior credit facility included an accordion feature of $5 million. In addition, the borrowing base of the credit facility includes the accounts of Pacific Ag. Products, LLC (PAP”, the company’s feed marketing subsidiary. The credit facility matures on December 31, 2015.
Neil Koehler, the company’s president and CEO, stated, “The introduction of advanced ethanol blends, favorable ethanol blend economics and supportive government policies present new growth opportunities for Pacific Ethanol. The increased line of credit supports these growth opportunities while lowering our cost of capital. With the additional borrowing base from PAP, we are able to better utilize our feed business to add value to the consolidated enterprise.”
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