Dimon postpones $650 million bond offering due to market conditions

By Paul A. Harris

St. Louis, April 19 - Dimon Inc. postponed its $650 million three-part bond offering on Tuesday, citing adverse conditions in the high-yield debt markets, according to a news release from the company.

Issuing via Alliance One International Inc., the company was in the market with $400 million of eight-year unsecured senior fixed-rate notes that were non-callable for four years and seven-year unsecured senior floating-rate notes (B2/B+) that were non-callable for two years, as well as $250 million of 10-year unsecured senior subordinated notes (B3/B) that were non-callable for five years.

Wachovia Securities and Deutsche Bank Securities were the bookrunners.

Dimon also will postpone its pending process to obtain a new $450 million senior secured credit facility, the company said in the news release.

Proceeds were slated to repay outstanding debt under Dimon's and Standard Commercial Corp.'s existing senior credit facilities, to consummate tender offers for Dimon's $200 million 9 5/8% senior notes due 2011 and $125 million 7¾% senior notes due 2013, and Standard's $150 million 8% senior notes due 2012.

Dimon and Standard are to be merged into Alliance One International.

Danville, Va.-based Dimon is the world's second largest dealer of tobacco with operations in more than 30 countries.

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