The renewal with Wells Fargo Capital Finance extends the term for an additional two years, lowers the stated interest rate by 1.00% and increases the maximum amount of the credit facility from up to $35m to up to $40m.
Pacific Ethanol president and CEO Neil Koehler said the introduction of advanced ethanol blends, favorable ethanol blend economics and supportive government policies present new growth opportunities for Pacific Ethanol.
"The increased line of credit supports these growth opportunities while lowering our cost of capital. With the additional borrowing base from PAP, we are able to better utilize our feed business to add value to the consolidated enterprise," Koehler said.
The company said the prior credit facility included an accordion feature of $5m.
The credit facility also includes the accounts of Pacific Ag. Products, the company’s feed marketing subsidiary.
According to the company, the credit facility matures on 31 December 2015.
Pacific Ethanol is a marketer and producer of low-carbon renewable fuels in the western US.
