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Pacific Ethanol closes second installment of financing transaction

Pacific Ethanol announced earlier that the company closed the second installment of its financing, issuing $8M in subordinated convertible Series B notes. As announced on March 28, the company entered into an agreement to raise up to $14M in two installments. The first closed on March 28, and included the issuance of $6M in subordinated convertible Series A notes, together with Series A Warrants and Series B Warrants. On June 21, the company purchased the remaining $4.1M of Plant debt due on June 25, for $3M, extending the maturity of $2.9M of the purchased debt to June 2016 and retiring $1.2 million of the purchased debt. The company also purchased an additional 2% ownership interest in the Pacific Ethanol Plants for $0.2M, increasing its total ownership to 85%. Shares of Pacific Ethanol are higher by 33c or 9% to $4.01.