August 13, 2009 (FinancialWire) — Alliance One International, Inc. (NYSE: AOI) has priced its offering of 10% senior notes due 2016. The company increased the size of the notes offering from $75 million to $100 million.

The notes were priced at 97.500% of the face value, for gross proceeds of $97.5 million and representing a yield to maturity of around 10.512%. The notes will form a part of the same series as Alliance One’s outstanding 10% senior notes due 2016, which were issued on July 2.

Upon completion of the latest offering, the aggregate principal amount of outstanding notes of this series would be $670 million.

Alliance One plans to use the net proceeds of the offering to repay outstanding borrowings under certain short-term seasonal lines of credit from foreign financing sources that mature over the next two to ten months and bear interest at annual rates ranging from around 10.30% to 11.25%.

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

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