Pacific Ethanol, Inc., a producer and marketer of low-carbon renewable fuels and high-quality alcohol products in the United States, reported it has extended the terms of its credit agreements with CoBank, ACB.
Pacific Ethanol Pekin, an indirect wholly-owned subsidiary of Pacific Ethanol, Inc., has entered into an amendment to extend the payment and covenant terms of its credit agreements with CoBank, ACB to November 15, 2019.
In March 2019, the company announced initiation of strategic initiatives to improve its liquidity and strengthen its balance sheet. The extension of credit terms with CoBank provides the company with additional time and liquidity to help facilitate the its strategic initiatives.
“We continue to make good progress on our strategic initiatives to improve liquidity, reduce our debt and to provide greater financial flexibility to pursue future growth opportunities and increase shareholder value and are pleased to be working collaboratively with our lenders to allow time for us to pursue these initiatives," says Neil Koehler, Pacific Ethanol’s president and CEO. "This extension reflects CoBank’s continued support of Pacific Ethanol and, we believe, its confidence in the credit strength of the Pekin facilities, in management and in the long-term value of the industry.”
