Pyxus International launched an exchange offer for its subsidiary Pyxus Holdings’ $148.3 million in outstanding 8.5% senior secured notes due 2027. Under the offer, eligible noteholders can exchange each $1,000 in existing notes for a combination of Pyxus common stock, valued at $3.25 per share, and new floating-rate senior secured notes. Holders tendering by Nov. 24 will receive $344.37 in stock value and $675.90 in new notes, compared with $327.15 in stock value and $642.11 in new notes for later tenders.
The offer, which expires Dec. 10, is part of a broader restructuring agreement with creditors holding significant portions of the company’s existing debt. Pyxus is also seeking approval to eliminate most restrictive covenants, subordinate the existing notes to certain other debt, remove change-of-control protections, and release the collateral securing the notes. Settlement is expected around Dec. 15, subject to creditor approvals and other conditions.
