Pacific Ethanol, Inc. Closes Sale of its Ownership Interest in Pacific Aurora, LLC

SACRAMENTO, Calif., April 16, 2020 (GLOBE NEWSWIRE) -- Pacific Ethanol, Inc. (NASDAQ: PEIX), a leading producer and marketer of low-carbon renewable fuels and high-quality alcohol products in the United States, announced today it has closed on its agreement to sell its 74% ownership interest in Pacific Aurora, LLC to Aurora Cooperative Elevator Company (Aurora Cooperative) for a total valuation of $52.8 million. After working capital adjustments and settlement of certain payables between the parties, the Company received at closing $20.2 million of cash, before fees and $16.5 million in promissory notes. Approximately $14.5 million of the cash proceeds will be used to pay principal payments to its lender, CoBank.

Neil Koehler, Pacific Ethanol’s president and CEO, stated, “We are pleased to have completed our sale to Aurora Cooperative and its farmer owners, which represents a significant step in achieving our strategic initiatives to reduce debt and continue to focus our resources on delivering high value alcohol and feed products in the markets we serve.”

Chris Vincent, Aurora Cooperative President and CEO, stated, “Aurora Cooperative is pleased to protect these local destination and rail markets for our farmer owners by gaining full ownership of these ethanol plants, elevator, and rail assets. Through this acquisition Aurora Cooperative will safeguard our markets and be ‘Tougher Together’ for our owners, employees and the communities we serve.”

About Pacific Ethanol, Inc. 
Pacific Ethanol, Inc. (PEIX) is a leading producer and marketer of low-carbon renewable fuels and high-quality alcohol products in the United States. Pacific Ethanol owns and operates nine production facilities, four in the Western states of California, Oregon and Idaho, and five in the Midwestern states of Illinois and Nebraska. The plants have a combined production capacity of 605 million gallons per year, produce over one million tons per year of ethanol co-products – on a dry matter basis – such as wet and dry distillers grains, wet and dry corn gluten feed, condensed distillers solubles, corn gluten meal, corn germ, corn oil, distillers yeast and CO2. Pacific Ethanol markets and distributes fuel-grade ethanol, high-quality alcohol products and co-products domestically and internationally. Pacific Ethanol’s subsidiary, Kinergy Marketing LLC, markets all ethanol and alcohol products for Pacific Ethanol’s plants as well as for third parties, approaching one billion gallons of ethanol marketed annually based on historical volumes. Pacific Ethanol’s subsidiary, Pacific Ag. Products LLC, markets wet and dry distillers grains. For more information please visit www.pacificethanol.com.