Quarterly report pursuant to Section 13 or 15(d)

DEBT.

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DEBT.
3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
DEBT.

5. DEBT.

 

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

 

    March 31, 2020     December 31, 2019  
Kinergy line of credit   $ 60,182     $ 78,338  
Pekin term loan     39,500       39,500  
Pekin revolving loan     32,000       32,000  
ICP term loan     12,000       12,000  
ICP revolving loan     18,000       18,000  
Parent notes payable     65,782       65,649  
      227,464       245,487  
Less unamortized debt premium     404       461  
Less unamortized debt financing costs     (1,847 )     (2,153 )
Less short-term portion     (86,682 )     (63,000 )
Long-term debt   $ 139,339     $ 180,795  

 

PE Pekin Credit Facilities – On March 20, 2020, Pacific Ethanol Pekin, LLC ("PE Pekin") and its lender agreed to defer $1.0 million in aggregate interest payments due March 20, 2020 and April 20, 2020 until May 20, 2020. On that same date, the Company granted to the lender a security interest in all of the Company's equity interests in PE Op Co., which indirectly owns the Company's plants located on the West Coast. The Company and certain subsidiaries also entered into intercreditor agreements with the PE Pekin and Illinois Corn Processing, LLC ("ICP") lenders, and the agent for the Company's senior secured noteholders, to address issues of priority and the allocation of proceeds from asset sales. On April 15, 2020, as part and upon the closing of the Company's sale of its interests in Pacific Aurora, the Company made approximately $11.6 million in principal payments on the PE Pekin term debt.

 

ICP Credit Facilities – On March 20, 2020, ICP and its lender agreed to defer a $1.5 million principal payment due March 20, 2020 and $0.3 million in aggregate interest payments due March 20, 2020 and April 20, 2020 until May 20, 2020. On that same date, the Company granted to the lender a security interest in all of the Company's equity interests in PE Op Co. The Company and certain of its subsidiaries also entered into intercreditor agreements with the PE Pekin and ICP lenders, and the agent for the Company's senior secured noteholders, to address issues of priority and the allocation of proceeds from asset sales. On April 15, 2020, as part and upon the closing of the Company's sale of its interests in Pacific Aurora, the Company made approximately $2.9 million in principal payments on the ICP term debt.

 

CARES Act Loans – On May 4, 2020, Pacific Ethanol, Inc. and PE Pekin received loan proceeds from Bank of America, NA under the recently enacted Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"), through the Paycheck Protection Program administered by the U.S. Small Business Administration. Pacific Ethanol, Inc. received $6.0 million and PE Pekin received $3.9 million in loan proceeds. The loans mature in two years and bear interest at a rate of 1.00% per annum. Under the terms of the loans, certain amounts may be forgiven if they are used for qualifying expenses as described in the CARES Act, but the Company can provide no assurance that it will be able to obtain forgiveness of all or any portion of the loans.

 

Restrictions – At March 31, 2020, there were approximately $174.9 million of net assets at the Company's subsidiaries that were not available to be transferred to Pacific Ethanol, Inc. in the form of dividends, loans or advances due to restrictions contained in the credit facilities of the Company's subsidiaries.