Pacific Ethanol Announces Closing of $75 Million Equity Offerings
Pacific Ethanol, Inc. (NASDAQ: PEIX) announced the successful closure of an underwritten public offering, raising approximately $75.0 million in gross proceeds. The offering included 5,075,000 shares of common stock priced at $8.42 each and 3,825,493 pre-funded warrants. The net proceeds, around $70.0 million, will be utilized to reduce debt and enhance corporate capabilities. CEO Michael Kandris remarked that this capital boost will improve the company’s balance sheet and enable a focus on profitable initiatives, signaling optimism for future financial performance.
- Raised approximately $75.0 million in gross proceeds from the public offering.
- Net proceeds of about $70.0 million will help reduce high-interest debt and enhance corporate capabilities.
- Expected to improve earnings per share on a pro forma basis.
- None.
SACRAMENTO, Calif., Oct. 28, 2020 (GLOBE NEWSWIRE) -- Pacific Ethanol, Inc. (NASDAQ: PEIX), a leading producer of specialty alcohols and essential ingredients, today announced the closing of its previously announced underwritten public offering of common stock and pre-funded warrants and concurrent private offering of warrants, for total gross proceeds of approximately
The company closed an underwritten public offering of 5,075,000 shares of its common stock at a public offering price of
The company intends to use the net proceeds from the offering to reduce debt and other corporate purposes. Repaying a portion of the company’s senior notes and term loans, which have interest rates of
Michael Kandris, the company’s president and CEO, stated “The net proceeds from this capital raise significantly accelerates improving the company’s balance sheet and allows us to focus our resources on highly valuable and profitable initiatives. We are excited about our company’s future with this improved liquidity, reduced debt burden, and strong financial performance.”
Guggenheim Securities LLC acted as the sole book-running manager for the public offering. Craig-Hallum Capital Group LLC and H.C. Wainwright & Co. LLC acted as co-managers for the public offering.
A prospectus supplement and accompanying prospectus describing the terms of the public and private offering has been filed with the SEC. Copies of the final prospectus supplement and the accompanying prospectus relating to the securities being offered may also be obtained, when available, from Guggenheim Securities LLC, Attention: Syndicate Prospectus Department, 330 Madison Avenue, New York, NY 10017, or by telephone at (212) 518-9658 or by email at GSEquityProspectusDelivery@guggenheimpartners.com. Electronic copies of the final prospectus supplement and accompanying prospectus are available on the SEC’s website at http://www.sec.gov.
About Pacific Ethanol, Inc.
Pacific Ethanol, Inc. (PEIX) is a leading producer of specialty alcohols and essential ingredients. The company is focused on products for four key markets: Health, Home & Beauty, Food & Beverage, Essential Ingredients and Renewable Fuels. The company’s customers include major food and beverage companies and consumer products companies. Pacific Ethanol’s subsidiary, Kinergy Marketing LLC, markets all specialty alcohol products for Pacific Ethanol’s distilleries as well as fuel grade ethanol for third parties. Pacific Ethanol’s subsidiary, Pacific Ag. Products LLC, markets wet and dry distillers grains. For more information please visit www.pacificethanol.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements and information contained in this communication that refer to or include Pacific Ethanol’s estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Pacific Ethanol’s current perspective of existing trends and information as of the date of the communication. Forward looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning future market conditions; Pacific Ethanol’s new business focus and its effects; Pacific Ethanol’s expectation that by using a portion of the net proceeds from the offerings to repay a portion of Pacific Ethanol’s senior notes and term loans will be accretive to 2020 earnings per share on a pro forma basis;; Pacific Ethanol’s expectations regarding its current and future financial performance; and Pacific Ethanol’s other plans, objectives, expectations and intentions. It is important to note that Pacific Ethanol’s plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Pacific Ethanol’s current expectations depending upon a number of factors affecting Pacific Ethanol’s business. These factors include, among others, adverse economic and market conditions, including for specialty alcohols and essential ingredients; export conditions and international demand for the company’s products; fluctuations in the price of and demand for oil and gasoline; raw material costs, including production input costs, such as corn and natural gas; the effects – both positive and negative – of the novel coronavirus; and the ability of Pacific Ethanol to timely and successfully execute on its strategic realignment and new business focus. These factors also include, among others, the inherent uncertainty associated with financial and other projections; the anticipated size of the markets and continued demand for Pacific Ethanol’s products; the impact of competitive products and pricing; the risks and uncertainties normally incident to the specialty alcohol production and marketing industries; changes in generally accepted accounting principles; successful compliance with governmental regulations applicable to Pacific Ethanol’s distilleries, products and/or businesses; changes in laws, regulations and governmental policies; the loss of key senior management or staff; and other events, factors and risks previously and from time to time disclosed in Pacific Ethanol’s filings with the Securities and Exchange Commission including, specifically, those factors set forth in the “Risk Factors” section contained in Pacific Ethanol’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 13, 2020.
| Company IR Contact: | IR Agency Contact: | Media Contact: |
| Pacific Ethanol, Inc. | Moriah Shilton | Paul Koehler |
| 916-403-2755 | LHA | Pacific Ethanol, Inc. |
| Investorrelations@pacificethanol.com | 415-433-3777 | 916-403-2790 |
| paulk@pacificethanol.com | ||
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