Pacific Ethanol to raise USD 8m in fresh capital

Dec 9, 2011 - US green fuel maker Pacific Ethanol Inc (NASDAQ:PEIX) today said it had agreed to sell USD 8 million (EUR 6m) in stock to a group of institutional investors.

The company plans to use USD 4.6 million of the proceeds to acquire an additional 7%-stake in New PE Holdco LLC, which owns the four Pacific Ethanol production facilities with a total capacity of 200 million gallons (757.1 litres) of ethanol. The deal will increase Pacific Ethanol's total stake in PE Holdco to 34%.

As part of the private placement, Pacific Ethanol will issue over 7.6 million of common shares priced at USD 1.05 apiece, a discount of some 19% to the closing price of the company's common stock on December 8. It will also distribute warrants to buy nearly 5 million common shares at USD 1.50 each.

The transaction is seen to close on December 13.

Lazard Capital Markets has been appointed as the sole placement agent for the offering.

(USD 1 = EUR 0.750)

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