Pyxus International announced that one of its indirect subsidiaries has entered into a term loan credit agreement with the company and certain of its other subsidiaries as guarantors, with certain funds managed by Glendon Capital Management and Monarch Alternative Capital as lenders and Alter Domus (U.S.) as administrative agent and collateral agent.
The credit agreement establishes a $120 million delayed-draw term loan credit facility with a maturity date in July 2022.
“Covid-19 has caused delays in shipment of leaf tobacco, which, as a result, has pushed fulfillment of certain customer orders from the fourth quarter of fiscal 2021 into fiscal 2022,” said Pieter Sikkel, president and CEO of Pyxus International, in a statement.
“The combination of these delays along with increasing customer demand for 2021 crops has created the need for a short-term financing to fund working capital. We anticipate a portion of this loan will be repaid once Covid-19-related delays have been resolved, though a portion may be left outstanding to fund increased purchases of this year’s crop in line with our improving sales expectations.”