Pyxus International, Inc. Secures Additional Working Capital Funding

Rhea-AI Summary

Pyxus International, Inc. (PYYX) announced a $120 million delayed-draw term loan credit facility, with a maturity in July 2022, to address COVID-19-related shipment delays and increased customer demand for 2021 crops. The company anticipates part of the loan will be repaid once shipment delays are resolved, although some may remain to support crop purchases. CEO Pieter Sikkel noted that the pandemic has significantly impacted operational timelines and customer fulfillment.

Positive

• Secured a $120 million credit facility to improve liquidity.
• Loan will help in fulfilling increased customer demand for 2021 crops.

Negative

• COVID-19 has caused significant shipment delays, affecting business operations.
• Reliance on short-term financing may indicate underlying financial instability.

MORRISVILLE, N.C., April 29, 2021 /PRNewswire/ -- Pyxus International, Inc. (OTC Pink: PYYX) ("Pyxus International" or the "Company"), a global value-added agricultural company, today announced that one of its indirect subsidiaries has entered into a Term Loan Credit Agreement ("the Credit Agreement") with the Company and certain of its other subsidiaries as guarantors, certain funds managed by Glendon Capital Management LP and Monarch Alternative Capital LP, as lenders, and Alter Domus (US) LLC as administrative agent and collateral agent. The Credit Agreement establishes a $120 million delayed-draw term loan credit facility, with a maturity date in July 2022.

"As previously stated, COVID-19 has caused delays in shipment of leaf tobacco which, as a result, has pushed fulfillment of certain customer orders from the fourth quarter of fiscal 2021 into fiscal 2022," said Pieter Sikkel, president and CEO of Pyxus International. "The combination of these delays along with increasing customer demand for 2021 crops has created the need for a short-term financing to fund working capital. We anticipate a portion of this loan will be repaid once COVID-19-related delays have been resolved, though a portion may be left outstanding to fund increased purchases of this year's crop in line with our improving sales expectations."

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.

Cautionary Statement Regarding Forward-Looking Statements
Readers are cautioned that the statements contained in this press release regarding expectations of shipment timing, customer demand levels, the level of crop purchases and loan repayment timing are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995.  If underlying assumptions prove inaccurate, or if known or unknown risks or uncertainties materialize, actual results could vary materially from those anticipated, estimated, or projected.  Some of these risks and uncertainties include changes in the timing of anticipated shipments, changes in anticipated geographic product sourcing, changes in relevant capital markets affecting the terms and availability of short-term seasonal financing, political instability, shifts in the global supply and demand position for tobacco products, adverse weather conditions that may affect crop size in affected regions, the impact of disasters or other unusual events affecting international commerce, as well as risks and uncertainties related to the COVID-19 pandemic, including possible delays in shipments of leaf tobacco, including from the closure or restricted activities at ports or other channels, disruptions to the Company's operations or the operations of suppliers and customers resulting from restrictions on the ability of employees and others in the supply chain to travel and work, border closures, determinations by Pyxus International or shippers to temporarily suspend operations in affected areas, whether the Company's operations that have been classified as "essential" under various governmental orders restricting business activities will continue to be so classified or, even if so classified, whether site-specific health and safety concerns related to COVID-19 might otherwise require operations at any of the Company's facilities to be halted for some period of time, and the extent to which the impact of the COVID-19 pandemic on the Company's operations and the demand for its products may not coincide with impacts experienced in the United States due to the international scope of its operations, including in emerging and other markets in which the Company operates where the timing and severity of COVID-19 outbreaks and the pace of COVID-19 vaccinations may differ from those in the United States.

 

View original content:http://www.prnewswire.com/news-releases/pyxus-international-inc-secures-additional-working-capital-funding-301280557.html

SOURCE Pyxus International, Inc.

FAQ

What is Pyxus International's latest financial update?

Pyxus International has secured a $120 million delayed-draw term loan credit facility to address financial needs caused by shipment delays.

When does the credit facility for Pyxus International mature?

The credit facility matures in July 2022.

What has caused the need for additional financing at Pyxus International?

COVID-19-related shipment delays and increasing customer demand have created a need for short-term financing.

How much money did Pyxus International secure in its latest funding?

Pyxus International secured $120 million in a credit facility.

What are the main risks outlined in Pyxus International's press release?

Risks include changes in shipment timing, supply chain disruptions, and ongoing impacts from the COVID-19 pandemic.