MORRISVILLE, N.C., Oct. 14, 2016 /PRNewswire/ -- Alliance One
International, Inc. (NYSE: AOI) ("Alliance One" or the "Company")
today announced that it has completed its previously announced
offering of $275 million in aggregate
principal amount of its 8.500% senior secured first lien notes due
2021 (the "Notes"), at an issue price of 99.085% of the face amount
thereof. The offer was made in the
United States to qualified institutional buyers pursuant to
Rule 144A under the Securities Act of 1933, as amended (the
"Securities Act"), and to persons in offshore transactions in
reliance on Regulation S under the Securities Act.
Alliance One also announced that it has entered into an ABL
credit agreement with certain bank lenders establishing a senior
secured revolving asset-based lending facility (the "ABL Facility")
of $60.0 million subject to a
borrowing base composed of its eligible accounts receivable and
inventory. Borrowings under the ABL Facility will bear
interest at an annual rate equal to LIBOR plus 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 (the "Existing 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.
This press release is for informational purposes only and does
not constitute an offer to sell, or the solicitation of an offer to
buy, any securities. Any offer of the Notes is made only by
means of a private offering memorandum. The Notes have not
been registered under the Securities Act, or the securities laws of
any other jurisdiction, and may not be offered or sold in
the United States without
registration or an applicable exemption from registration
requirements.
Forward-Looking Statements
This press release contains forward-looking statements.
Actual results may differ materially from those reflected in the
forward-looking statements. Additional information concerning
factors that could cause actual results to differ materially from
those in the forward-looking statements is contained under the
heading of "Risk Factors" listed from time to time in the Company's
filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K for the fiscal year ended March 31, 2016, filed on July 12, 2016.
About Alliance One
Alliance One is a leading global independent leaf merchant. For
more information on Alliance One, visit the Company's website at
www.aointl.com.
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SOURCE Alliance One International, Inc.