Pyxus to repurchase at discount, retire long-term debt

By Wendy Van Sickle

Columbus, Ohio, March 25 – Pyxus International, Inc. announced its wholly owned subsidiary, Pyxus Holdings, Inc., entered into a privately negotiated repurchase agreement with certain holders of the its 8.5% senior secured notes due 2027 and its senior secured term loans due 2027, according to a new release.

As of March 29, the company will have paid approximately $60 million in cash plus unpaid interest to repurchase about $78 million principal amount of the 2027 notes, a 23% discount to par. Under the repurchase agreement, the company also acquired the right to repurchase from the holders up to an additional $34.2 million of principal amount of the 2027 notes for $26.3 million, at the same discount, and $10.3 million principal amount of the 2027 loans for $9.1 million, a 12% discount to par.

All repurchases, including accrued interest and fees and expenses, are expected to be primarily funded from cash on hand.

In addition to the $122.5 million reduction in total principal amount of long-term debt from these actions, Pyxus expects to retire at maturity the remaining outstanding $20.4 million principal amount of 10% senior secured notes due Aug. 24.

As a result of these anticipated actions, the total principal amount of the company's long-term debt outstanding at $600.6 million as of Dec. 31 would be reduced by $142.9 million. The annual interest cost reduction associated with this elimination of long-term debt is $12.9 million.

Pyxus is a Morrisville, N.C.-based global agricultural company.

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