Pacific Ethanol issues stock to pay down senior notes

In California, Pacific Ethanol announced it has entered into agreements to reduce the principal amount of its senior notes by $2.0 million by issuing 500,000 shares of common stock. The company’s common stock is valued in the transaction at $4.00 per share, the closing price on December 13, 2013. Reducing the principal on the senior notes by $2.0 million ensures that the company will avoid scheduled interest rate increases, locking in an annual rate of five percent for the remaining term of the senior notes.