Pacific Ethanol All Set to Increase Its Ownership in Ethanol Plants
According to the latest news from chemical industry one of the renowned names in the field of low-carbon renewable fuels production Pacific Ethanol is all set to enter into an agreement to increase the ownership interest in the plant and improving the debt position. According to reports from the company, with this agreement, the company will be purchasing $21.54 million of Pacific Ethanol plant secured term debt will be extending the maturity date of the purchased term debt from June 2013 to June 2016.
The move was taken by the company after having perceived the growing demand of low-carbon renewable fuels across the United States. The company has said that it is in the final verge of completing the formalities of the deal and it will help the company achieving its goals and desires. According to the reports from the company the deal will also offer extension of the maturity of the $10.0 million secured revolving debt facility for the plants from June 2013 to June 2015. Though there are plenty of hurdles present all the way through there the company is committed to materialize the deal. The company has reiterated that with this deal the company will purchase an additional 13% ownership interest in New PE Holdco, LLC for $1.3 million which will increase the equity ownership of the company by 80%.
Though the deal is finalized still there were plenty of hurdles all along the way and one of those were funding capital and financial need. However, the company has entered into financial agreement with various investors that helped them raise $22.2 million of senior unsecured notes, and five-year warrants purchasing up to 25.6 million shares of the company's common stock.ls
While talking to industry experts and professionals the CEO of the company and existing President, Neil Koehler the deal is certainly going to be a milestone in our business history and that the company is obliged to all those stakeholders who helped them all the way through. In its notes the President stated "The consummation of these transactions will provide significant improvements to our balance sheet and operations by reducing our financing costs, extending debt maturities and increasing our ownership share of the Pacific Ethanol plants to 80%. Upon the closing of these transactions, we will reduce plant debt due in 2013 to $6.7 million and reduce our combined purchase price of ownership interests in New PE Holdco to $0.34 per gallon on a weighted average basis, thereby securing a competitive and low cost ownership basis for our stockholders€.
About Methanol Chemicals Company (CHEMANOL)
Methanol Chemicals also known as CHEMANOL is one of the renowned names in the production, manufacturing and distribution of petrochemical products in the middle east and across the globe. The company is headquartered in Saudi Arabia and has been widely known across the globe for its quality service in various spheres of petrochemical segment. The company is actively engaged in the production of various methanol derivatives such as
€ Aqueous formaldehydes
€ Urea Formaldehydes
€ Super plasticizers
€ Amino resins
€ Agricultural fertilizers
€ Solvents
€ Laminates
€ Concrete admixtures
The product range of the company includes
€ Aqueous formaldehyde solutions
€ Paraformaldehyde
€ Hexamethylene tetramine
€ Urea formaldehyde powder resin
€ Sulphonated naphthalene
€ Formaldehyde liquid
The move is being viewed as one of the most significant events in the middle-east petrochemical sector as it would help them fulfilling the basic requirements of low-carbon renewable fuels across the regions and various parts of the globe. Industry experts and players from different parts of petrochemical sector have overwhelmingly appreciated the move and they are of the opinion that it would help the industry as a whole.
The move was taken by the company after having perceived the growing demand of low-carbon renewable fuels across the United States. The company has said that it is in the final verge of completing the formalities of the deal and it will help the company achieving its goals and desires. According to the reports from the company the deal will also offer extension of the maturity of the $10.0 million secured revolving debt facility for the plants from June 2013 to June 2015. Though there are plenty of hurdles present all the way through there the company is committed to materialize the deal. The company has reiterated that with this deal the company will purchase an additional 13% ownership interest in New PE Holdco, LLC for $1.3 million which will increase the equity ownership of the company by 80%.
Though the deal is finalized still there were plenty of hurdles all along the way and one of those were funding capital and financial need. However, the company has entered into financial agreement with various investors that helped them raise $22.2 million of senior unsecured notes, and five-year warrants purchasing up to 25.6 million shares of the company's common stock.ls
While talking to industry experts and professionals the CEO of the company and existing President, Neil Koehler the deal is certainly going to be a milestone in our business history and that the company is obliged to all those stakeholders who helped them all the way through. In its notes the President stated "The consummation of these transactions will provide significant improvements to our balance sheet and operations by reducing our financing costs, extending debt maturities and increasing our ownership share of the Pacific Ethanol plants to 80%. Upon the closing of these transactions, we will reduce plant debt due in 2013 to $6.7 million and reduce our combined purchase price of ownership interests in New PE Holdco to $0.34 per gallon on a weighted average basis, thereby securing a competitive and low cost ownership basis for our stockholders€.
About Methanol Chemicals Company (CHEMANOL)
Methanol Chemicals also known as CHEMANOL is one of the renowned names in the production, manufacturing and distribution of petrochemical products in the middle east and across the globe. The company is headquartered in Saudi Arabia and has been widely known across the globe for its quality service in various spheres of petrochemical segment. The company is actively engaged in the production of various methanol derivatives such as
€ Aqueous formaldehydes
€ Urea Formaldehydes
€ Super plasticizers
€ Amino resins
€ Agricultural fertilizers
€ Solvents
€ Laminates
€ Concrete admixtures
The product range of the company includes
€ Aqueous formaldehyde solutions
€ Paraformaldehyde
€ Hexamethylene tetramine
€ Urea formaldehyde powder resin
€ Sulphonated naphthalene
€ Formaldehyde liquid
The move is being viewed as one of the most significant events in the middle-east petrochemical sector as it would help them fulfilling the basic requirements of low-carbon renewable fuels across the regions and various parts of the globe. Industry experts and players from different parts of petrochemical sector have overwhelmingly appreciated the move and they are of the opinion that it would help the industry as a whole.
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