June 29, 2009 (FinancialWire) — Alliance One International, Inc. (NYSE: AOI) has priced its offering of senior notes due 2016. The face value of the notes is $570 million with an interest rate of 10%. The notes were priced at 95.177% of the face value, for gross proceeds of around $542.5 million and representing a yield to maturity of 11%.

The company plans to use a portion of the net proceeds from the offering and a portion of the net proceeds from its pending offering of $100 million of its convertible senior subordinated notes due 2014 to fund the purchase price of a number of existing notes issues.

Alliance plans to buy back its 11% senior notes due 2012, 8.5% senior notes due 2012, 12.75% senior subordinated notes due 2012, 9.625% senior notes due 2011, 7.75% senior notes due 2013 and 8% senior notes due 2012 via a cash tender offer launched on June 9.

The company intends to apply the remaining net proceeds of the offerings to repay certain outstanding borrowings under its senior secured credit facility. Alliance plans to use the balance of the proceeds, if any, for other general corporate purposes.

Morrisville, North Carolina-based Alliance One International is an independent leaf tobacco merchant serving multinational cigarette manufacturers.

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