Alliance One International said it entered into an agreement to amend and restate its senior secured revolving credit facility with Deutsche Bank Trust Company Americas serving as administrative agent.
Upon the effectiveness of the amendment and restatement, the senior secured revolving credit facility will be in the amount of approximately $303.9 million, which will automatically reduce to approximately $210.3 million in April 2014, and will mature in April 2017, subject to a springing maturity in April 2014 if by that date the company has not deposited sufficient amounts to fund the repayment at maturity of all then outstanding 5% convertible senior subordinated notes due 2014 of the company.
Borrowings under the amended senior secured revolving credit facility will initially bear interest at an annual rate of LIBOR plus 3.75% and base rate plus 2.75%, as applicable, though the interest rate under the amended senior secured revolving credit facility will be subject to increase or decrease according to a consolidated interest coverage ratio.
The effectiveness of the amendment and restatement of the company’s senior secured revolving credit facility is subject to the satisfaction of the following conditions:
The issuance of senior secured second lien notes by the company in an offering providing gross cash proceeds of no less than a specified amount;
The application of a portion of the net proceeds of such offering of Senior Notes to pay the principal of, and the redemption premium and interest on, the Company’s $635 million in aggregate principal amount of 10% senior notes due 2016 (in connection with the Company’s previously announced conditional redemption of the Existing Senior Notes;
The deposit of the net proceeds of such offering of the senior notes not so applied to the redemption of all of the existing senior notes to a segregated account maintained by the lenders to be used solely to purchase any and all of the convertible notes tendered in the company’s previously announced cash tender offer and, subject to conditions, to retire any remaining convertible notes not purchased in the Tender Offer, including repayment at maturity; and customary closing conditions.