Pyxus International announced that it has reached a transaction support agreement with creditors holding a majority of its outstanding secured debt to restructure its capital structure through debt exchanges and an equity offering. The proposed transactions would convert approximately $92 million of debt into equity, repay $65 million of debt using equity offering proceeds, and extend maturities on approximately $300 million of remaining debt. The company plans to offer up to $85 million in common stock at $2.50 per share, with certain creditors committing to backstop $80 million of the offering.
Creditors supporting the agreement hold 67.9% of Pyxus Holdings’ Intabex term loans, 74.9% of its Pyxus term loans, and 56% of its senior secured notes. Pyxus expects to launch the note exchange offer within 10 days of the agreement’s effective date, with the remaining transactions to follow. The company expects to complete the restructuring by Dec. 15, subject to required approvals and participation thresholds.
