Pyxus International has retired the remaining $20.4 million aggregate principal amount of its 10 percent senior secured notes due 2024 at maturity. This payment, along with the company’s recently completed discounted repurchases under a privately negotiated agreement with Monarch Alternative Capital of its 8.50 percent senior secured notes and its senior secured Pyxus term loans both due in 2027, completes the planned elimination of $142.9 million of long-term debt from Pyxus’ capital structure, as announced March 25, 2024.
“We are pleased our sustained, disciplined approach to working capital management has resulted in the completion of our planned elimination of approximately a quarter of our long-term debt,” said Pyxus President and CEO Pieter Sikkel in a statement.
“These efforts have enabled us to steadily strengthen our business, improve our balance sheet and reinforce our position in the global marketplace. We remain focused on reducing our borrowing costs and believe the ongoing improvement in our credit profile positions us to decrease financing costs through our global lending partners, as well as evaluate a range of opportunities to deliver a more cost-effective capital structure.”
The retired notes are the remainder of an original $280.8 million principal amount of 10 percent Senior Secured Notes due 2024 that were issued in 2020. As part of the company’s debt exchange transactions completed in February 2023, it successfully exchanged 92.7 percent of the then-outstanding principal amount of those notes for its 8.50 percent senior secured notes due Dec. 31, 2027.