Representatives from tobacco company Pyxus International and its subsidiary, Pyxus Holdings, have signed a support and exchange agreement with a group of creditors. According to a company press release, the agreement is managed by the consulting client management fund of their company's advisors.
Pyxus company's main business is the supply of tobacco. They purchase, process, package, store, and transport tobacco for cigarette and other consumer tobacco product manufacturers all around the world. They also provide high-quality products for e-cigarette liquid, industrial cannabis, and legal cannabis industries.
According to the support agreement, the company and its subsidiaries plan to offer a comprehensive exchange transaction to all eligible secured debt holders, giving them the opportunity to exchange all of their secured debt at face value for newly issued secured debt that will mature on December 31, 2027. If completed, the exchange transaction will result in a significant portion of the secured debt being replaced with longer-term debt.
Pieter Sikkel, CEO of Pyxus, expressed gratitude towards the company's lenders and note holders for their support, which he sees as a sign of confidence in the company's long-term strategy and resilience. With the extension of the deadline to December 2027, the transaction will provide additional flexibility for Pyxus and allow them to focus on driving growth and delivering stakeholder value.
Agreements and exchange transactions are recommended by a special committee appointed by the company's board of directors. This committee is composed of mostly impartial members and has been approved by the board.
This document has been generated through artificial intelligence translation and is provided solely for the purposes of industry discourse and learning. Please note that the intellectual property rights of the content belong to the original media source or author. Owing to certain limitations in the translation process, there may be discrepancies between the translated text and the original content. We recommend referring to the original source for complete accuracy. In case of any inaccuracies, we invite you to reach out to us with corrections. If you believe any content has infringed upon your rights, please contact us immediately for its removal.
