Pacific Ethanol to issue stock on convertible preferreds for dividends

By Susanna Moon

Chicago, May 28 - Pacific Ethanol, Inc. agreed to issue shares to holders for accrued dividends on its series B cumulative convertible preferred stock, according to an 8-K filing with the Securities and Exchange Commission.

The company entered into a letter agreement on May 23 with holders of the convertible preferreds in which it agreed to pay $1,462,984 of accrued dividends by issuing 120,316 shares of its common stock.

Under the agreement, each of the holders agreed to forbear from exercising any rights for the remaining accrued dividends through Nov. 30, 2015.

The company agreed to issue to each of the holders the number of shares equal to the quotient by dividing (a) the payment amount of the accrued dividends owed by (b) $12.16, which was the closing price per share of the company's stock on May 21.

As of May 22, about $3.7 million of accrued dividends were owed to the holders of the preferreds.

Pacific Ethanol is a Fresno, Calif., owner and operator of ethanol plants.

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