Alliance One Prices $735 Mln 9.875% Senior Secured Second Lien Notes Due 2021

(RTTNews) - Alliance One International, Inc. (AOI) announced the pricing of its previously announced offering of senior secured second lien notes due 2021, with a face value of $735 million with an annual interest rate of 9.875%.

The company said the Notes were priced at 98.000% of the face value.

Alliance One said it expects to use the net proceeds of the offering, together with cash on hand, to fund the redemption of $635 million in aggregate principal amount of its 10% senior notes due 2016 and the purchase of up to $30 million in aggregate principal amount of its 51/2% convertible senior subordinated notes due 2014 pursuant to its previously announced cash tender offer.

Also, to pay fees and expenses related to the offering, the Redemption, the Tender Offer and the amendment and restatement of its existing senior secured revolving credit facility, the company added.

The company intends to amend the Tender Offer to provide for a cash tender offer for up to $30 million of the Convertible Notes. The amount of the offering exceeds the amount specified as a condition to the effectiveness of the previously announced amendment and restatement of the Company's existing senior secured revolving credit facility.