Alliance One International completed its previously announced offering of $275 million in aggregate principal amount of its 8.500% senior secured first lien notes due 2021 at an issue price of 99.085% of the face amount.

Alliance One also entered into an ABL credit agreement with certain bank lenders establishing a senior secured revolving asset-based lending facility of $60 million subject to a borrowing base composed of its eligible accounts receivable and inventory.

According to a related 8-K filing, Wells Fargo served as syndication agent, and Deutsche Bank served as administrative agent and collateral agent to establish the facility.

Borrowings under the ABL facility will bear interest at an annual rate equal to LIBOR+250 basis points or a base rate plus 150 basis points, as applicable, with a fee on unused borrowings initially at an annual rate of 50 basis points until March 31, 2017 and thereafter at annual rates of either 37.5 or 50 basis points based on the company’s average quarterly historical utilization under the ABL facility. The ABL facility will mature on January 14, 2021. Alliance One anticipates that borrowings under the ABL facility will be used to fund working capital needs and for other general corporate purposes.

Alliance One has used a portion of the net proceeds from the offering of the notes to repay in full all outstanding indebtedness and accrued and unpaid interest owed under its existing senior secured revolving credit facility. Upon such repayment, Alliance One terminated the existing credit facility.

The company intends to apply the remaining net proceeds of the offering of the notes for general corporate purposes, which is anticipated to result in a reduction in the amount of borrowings under its foreign seasonal lines of credit as those lines are renewed or replaced.