Energy Transfer, Pacific Ethanol Unveil Offering Pricings

Two companies announced pricings of offerings that included common shares and units, leading them to trade lower.

Energy Transfer Partners L.P.'s (ETP) sale of 13.5 million common units priced at a 3.1% discount to Wednesday's close. The pipeline operator's common units fell 4.8% to $43.75 in recent premarket trading, below the offer price of $44.57 a unit. The company plans to use the proceeds to pay down debt, fund capital expenditures related to pipeline-construction projects and for other purposes. The company had 229.9 million units outstanding as of June 20.

Meanwhile, Pacific Ethanol Inc. (PEIX) said its sale of 28 million units priced at 43 cents each. The renewable-fuels producer's shares slumped nearly 36% to 34 cents each in recent premarket trading. The company said each unit consists of one share of common stock, one warrant to purchase one share of common stock and an additional warrant to buy half a share. The company expects proceeds from the offering of about $10.8 million.

Pacific Ethanol expects to use proceeds to increase the company's stake in New PE Holdco LLC, which owns ethanol-production facilities that are managed by Pacific Ethanol, and for other purposes. The company had 86.8 million shares outstanding as of June 26.

source: online wsj