Pyxus International, Inc. Successfully Completes Financial Restructuring

Pyxus International, Inc. ("Pyxus" or "the Company"), a global value-added agricultural company, announced today that the Amended Joint Prepackaged Chapter 11 Plan of Reorganization of Pyxus International, Inc. and Its Affiliated Debtors (the "Plan") confirmed by the United States Bankruptcy Court for the District of Delaware on August 21, 2020 has become effective. As a result, Pyxus has successfully completed its financial restructuring and emerged from Chapter 11 with its debt reduced by more than $400 million and maturities extended. 

"Over the last two months, we have been keenly focused on enhancing the Company's financial flexibility, and the completion of our financial restructuring process is a significant step forward," said Pieter Sikkel, Pyxus' President and CEO. "We are now a stronger and more competitive company with a foundation that bolsters our position in targeted markets and enables us to drive long-term value for all of our stakeholders. I want to thank our exceptional team at Pyxus for their commitment and continued focus through this process. We are also grateful for the support of our vendors, suppliers, customers and partners and we look forward to working together for years to come."

Under the terms of the Plan, Pyxus has completed a comprehensive balance sheet restructuring that includes but is not limited to extending the maturity of its existing first lien debt, eliminating $635 million in principal amount of existing second lien debt, while adding a $213 million exit term loan, which replaced the debtor-in-possession financing incurred in connection with the Chapter 11 cases, and a $75 million exit asset based revolving facility. The elimination of the second lien debt and access to new working capital lines of credit, including foreign credit facilities, substantially strengthens the Company's balance sheet.

Pursuant to the Plan, in connection with the effectiveness of the Plan, a series of corporate transactions were completed which resulted in the Company being a new corporation renamed Pyxus International, Inc., which through its subsidiaries continues to operate the Company's businesses, while the corporation formerly known as Pyxus International, Inc. has changed its name to Old Holdco, Inc.  Upon the effectiveness of the Plan, all outstanding shares of Old Holdco, Inc. were cancelled.

The investment in the Company's exit term loan facility is being led by Glendon Capital Management L.P. and Monarch Alternative Capital LP. Collectively, Monarch and Glendon will own a majority of the new equity in the Company.

In accordance with the Plan, the Company's board of directors is comprised of three members, consisting of Mr. Sikkel, along with Patrick Fallon, Principal at Monarch, and Holly Kim, Partner at Glendon.

"We see tremendous opportunity for a delevered Pyxus," said Ms. Kim. "We are excited to work with the management team going forward to unlock the Company's full potential."

Simpson Thacher & Bartlett LLP served as legal counsel, and Lazard and RPA Advisors served as financial advisors to Pyxus.

About Pyxus International, Inc.

Pyxus International Inc. is a global agricultural company with more than 145 years of experience delivering value-added products and services to businesses, customers and consumers. Driven by a united purpose—to transform people's lives, so that together we can grow a better world—Pyxus International, its subsidiaries and affiliates, are trusted providers of responsibly sourced, independently verified, sustainable and traceable agricultural and consumer-driven products and ingredients. For more information, visit www.pyxus.com.