Pyxus International Announces New Lending Facility with PNC Bank
Morrisville, N.C. – In a significant financial development, Pyxus International, Inc. (OTC Pink: PYYX), a global agricultural enterprise known for adding value to agricultural products, has successfully amended its asset-based lending (ABL) facility with PNC Bank. Initially set up on February 8, 2022, this new agreement not only increases financial borrowing potential but also provides softer terms, allowing for enhanced operational flexibility.
The prominent change within this amended credit facility is the increase in borrowing capacity, now reaching a total of $150 million. Pyxus has secured an additional $30 million of funding, reflecting the company's strong position in the agricultural sector and its effective collaboration with financial partners. Furthermore, the agreement features a reduction of the interest rate margin from 300 basis points to 275 basis points, thus minimizing annual costs. Various fees associated with the credit facility have also been reduced or eliminated, contributing to an overall improved cost structure for the company.
Dustin Styons, Pyxus’ interim CFO, expressed his optimism regarding this financial adjustment, stating, "The successful completion of the new ABL facility highlights the strength of our partnership with PNC and demonstrates our continued progress in enhancing our credit profile." Styons emphasized that this strategic move further fortifies the company’s capital structure, providing significant operational flexibility. He reassured stakeholders that Pyxus is committed to following a disciplined and strategic approach to improving its credit standing.
This amendment does not only signify an increase in liquidity; it also underscores Pyxus’s dedication to cultivating its operational capabilities while navigating the evolving agricultural landscape. In a world where financial stability is crucial, such enhancements to credit agreements are paramount to ensuring a company's ability to innovate and grow sustainably.
About Pyxus International, Inc.
Founded over 150 years ago, Pyxus International, Inc., is a global agricultural company that has a reputation for delivering value-added products and services to its partners and customers. The company prioritizes a united mission: transforming lives to collaboratively cultivate a better world. Through its subsidiaries and affiliates, Pyxus has established itself as a trusted provider of responsibly sourced, sustainably produced, and traceable products.
For more information about Pyxus International, visit
www.pyxus.com.
Cautionary Notes
As with many businesses, Pyxus faces risks and uncertainties that might affect future performance. These include reliance on key customers, fluctuations in agricultural commodities, international trade dynamics, and changes in customer demands. Stakeholders are encouraged to review the company's reports for an in-depth analysis of potential operational challenges and risks. The company will continue to remain transparent about its operations and financial status, ensuring shareholders and partners are kept informed.
In conclusion, this enhanced lending facility with PNC Bank positions Pyxus International not only to better absorb market fluctuations but also allows the company to explore new avenues for growth in the agricultural sector.