Pyxus Enters Agreement with Creditors
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Pyxus International and certain of its subsidiaries, including Pyxus Holdings, entered into a Support and Exchange Agreement with a group of creditors, including Glendon Capital Management, Monarch Alternative Capital, Nut Tree Capital Management, Intermarket Corporation and Owl Creek Asset Management, on behalf of certain funds managed by them and/or certain of their advisory clients as applicable, according to a company press release.
Pursuant to the Support Agreement, the company and its subsidiaries intend to launch comprehensive exchange transactions offered to all qualified holders of its secured debt, by which such holders will be offered the opportunity to exchange all of their secured debt at par for newly issued secured debt, maturing on Dec. 31, 2027. If consummated, the exchange transactions will result in a significant portion of the secured debt being replaced with longer dated debt.
“The company appreciates the support received from our lenders and noteholders, which demonstrates their confidence in our long-term strategy and the resilience of our business,” said Pyxus President and CEO Pieter Sikkel. “The exchange transactions will provide us with additional flexibility and extend near-term maturities to December 2027, allowing us to focus on the continued growth of our business and driving stakeholder value.”
The support agreement and the exchange transactions were recommended by a special committee of the board of directors of the company comprising a majority of the disinterested members and approved by the board of directors of the company.
