Pyxus International, a global value-added agricultural company, entered into a $100 million asset-based lending credit facility with PNC Bank, effective Feb. 8. The agreement with PNC replaces the company’s preexisting $75 million ABL credit facility, which was due to mature in February 2023.
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,” Flavia Landsberg, executive vice president and chief financial officer of Pyxus, said. “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.”
