Pyxus Enters into New ABL Credit Agreement with PNC Bank

Rhea-AI Summary

Pyxus International, Inc. (OTC Pink: PYYX) has secured a $100 million asset-based lending (ABL) credit facility with PNC Bank as of February 8, 2022. This replaces the previous $75 million ABL facility, set to mature in February 2023. The new agreement enhances borrowing capacity and includes a $20 million uncommitted accordion feature, allowing potential increases to $120 million. Additionally, the facility offers reduced interest rates, improving the company's financial liquidity and supporting future growth, according to CFO Flavia Landsberg.

Positive

• Increased borrowing capacity from $75 million to $100 million.
• New $20 million accordion feature allowing for potential increase up to $120 million.
• Reduced interest rates provide improved liquidity.

Negative

• None.

MORRISVILLE, N.C., Feb. 10, 2022 /PRNewswire/ -- Pyxus International, Inc. (OTC Pink: PYYX) ("Pyxus" or the "Company"), a global value-added agricultural company, is pleased to announce it has entered into a $100 million asset-based lending (ABL) credit facility with PNC Bank effective February 8, 2022. The agreement with PNC replaces the Company's preexisting $75 million ABL credit facility, which was due to mature in February 2023.

"This agreement is the result of strategic measures taken by our Company to address liquidity."

The new ABL credit facility with PNC provides Pyxus with an extended maturity date, increases potential borrowing availability – from $75 million, per the previous agreement, to $100 million – and includes a $20 million uncommitted accordion feature, which permits Pyxus, under certain circumstances, to solicit lenders to increase the facility up to $120 million. Additionally, the new facility offers reduced pricing through a Bloomberg-Short-Term Bank Yield Index (BYSB) interest rate plus 300 basis points, down from the preexisting ABL facility's London Interbank Offered Rate (LIBOR) interest rate plus 475 basis points.

"We are pleased to announce our new ABL credit facility with PNC Bank and look forward to developing a long-standing relationship," said Flavia Landsberg, Pyxus' Executive Vice President and Chief Financial Officer. "This agreement is the result of strategic measures taken by our Company to address liquidity. It supports the execution of our future growth and strengthens our business' financial partnerships and relationships."

About Pyxus International, Inc.
Pyxus International, Inc. is a global agricultural company with more than 145 years' experience delivering value-added products and services to businesses and customers. Driven by a united purpose—to transform people's lives, so that together we can grow a better world—Pyxus International, its subsidiaries and affiliates, are trusted providers of responsibly sourced, independently verified, sustainable and traceable products and ingredients. For more information, visit www.pyxus.com.

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SOURCE Pyxus International, Inc.

FAQ

What is the new asset-based lending agreement for Pyxus (PYYX)?

Pyxus has entered into a $100 million ABL credit facility with PNC Bank, effective February 8, 2022.

How much was the previous ABL credit facility for Pyxus (PYYX)?

The previous ABL credit facility was for $75 million.

What is the maturity date of the previous ABL facility for Pyxus (PYYX)?

The previous ABL facility was set to mature in February 2023.

What benefits does the new ABL credit facility provide to Pyxus (PYYX)?

The new facility increases borrowing capacity, includes a $20 million accordion feature, and offers reduced interest rates.

Who commented on the new lending facility for Pyxus (PYYX)?

Flavia Landsberg, CFO of Pyxus, commented on the agreement, emphasizing its strategic importance for liquidity.