Pacific Ethanol to raise $35M via debt issue, sale of Front Range Energy stake

In California, Pacific Ethanol Inc. announced plans to raise $35 million by issuing senior notes. It will also sell the company’s minority stake in Front Range Energy for $18.5 million in cash.

The company plans to use some of funds to purchase a 20 percent stake in New PE Holdco LLC for $23.3 million. New PE Holdco currently owns four ethanol production facilities once owned by Pacific Ethanol. After the sale, Pacific Ethanol will hold the largest equity ownership position in New PE Holdco. Remaining funds will go towards paying off company debt.

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