Quarterly report pursuant to Section 13 or 15(d)

5. Debt

5. Debt
6 Months Ended
Jun. 30, 2017
Debt Disclosure [Abstract]  

Long-term borrowings are summarized as follows (in thousands):


    June 30, 2017     December 31, 2016  
Kinergy line of credit   $ 55,176     $ 49,862  
Pekin term loan     60,500       64,000  
Pekin revolving loan     32,000       32,000  
Pacific Aurora line of credit           1,000  
Parent notes payable     68,948       55,000  
      216,624       201,862  
Less unamortized debt discount     (1,772 )     (1,626 )
Less unamortized debt financing costs     (1,253 )     (1,708 )
Less short-term portion     (14,000 )     (10,500 )
Long-term debt   $ 199,599     $ 188,028  


Kinergy Operating Line of Credit – As of June 30, 2017, Kinergy had additional borrowing availability under its credit facility of $8,526,000.


Parent Notes Payable – On June 26, 2017, the Company entered into a Note Purchase Agreement (the “Note Purchase Agreement”) with five accredited investors (the “Investors”) and a related Consent of Holders and Amendment of Senior Secured Notes with the Investors and holders of the Company’s senior secured notes issued on December 15, 2016 (“Prior Senior Notes”). On June 30, 2017, under the terms of the Note Purchase Agreement, the Company sold approximately $13,948,000 in aggregate principal amount of its senior secured notes (the “Senior Notes”) to the Investors in a private offering for aggregate gross proceeds of 97% of the principal amount of the Senior Notes sold. Upon issuance, the Company recorded approximately $418,000 in unamortized debt discount. The Senior Notes have similar terms as the Prior Senior Notes including interest and maturity.


Distribution Restrictions – At June 30, 2017, there were approximately $271,143,000 of net assets of the Company’s subsidiaries that were not available to be transferred to Pacific Ethanol in the form of dividends, loans or advances due to restrictions contained in the credit facilities of the Company’s subsidiaries.