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16:49 PEIX
Pacific Ethanol disclosed amendments to credit facility and term loan arrangements to accommodate restart of production at its Madera, California ethanol production facility (17.25 -0.65)
The Credit Agreement Amendment maintains the borrowers' revolving credit facility at $15.0 million but allows the borrowers to terminate in whole or permanently reduce in part in $1.0 million increments the lenders' aggregate commitment. The lenders' aggregate commitments are no longer subject to increase. The Credit Agreement Amendment also increased to $24.0 million from $14.0 million the level of permitted indebtedness, including capital lease liabilities, that may be incurred for yield enhancing equipment or processing and separation equipment for corn oil and corn syrup at the Company's ethanol production facilities.

The Restated Credit Agreement Amendment reduces the borrowers' revolving credit facility from $35.0 million to $20.0 million while increasing the maximum amount of the term loan outstanding, allowing the borrowers to immediately borrow an additional $7.0 million. The additional $7.0 million in borrowings is subject to an original issue discount of 6.25%, representing loan fees payable to the lenders, resulting in net proceeds from the additional borrowings of approximately $6.6 million.


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