Pyxus International’s wholly owned subsidiary, Pyxus Holdings, has commenced a private offer to exchange any and all of the issuer’s outstanding 10 percent senior secured first lien notes due 2024 for an equal principal amount of new 8.5 percent senior secured notes due 2027 to be issued by the issuer, according to the company.
In conjunction with the exchange offer, the issuer is soliciting consents from the holders of the existing notes to amend the indenture, dated as of Aug. 24, 2020, among the issuer, the guarantors party thereto and Wilmington Trust, National Association, as trustee and collateral agent, the existing notes and the related intercreditor and security documents as necessary to, among other things, eliminate most of the restrictive covenants and certain of the affirmative covenants applicable to the existing notes; eliminate the change of control repurchase obligation in the existing notes indenture and the existing notes; subordinate in right of payment the existing notes to the issuer’s existing and future senior indebtedness, including the new notes, the new term loans, the existing term loans and the ABL credit agreement; and eliminate certain events of default and release all of the collateral securing the existing notes.
This follows Pyxus’ previous announcement of its agreement with creditors.