Sonoco draws down $250 million under revolver, gets $100 million 364-day term loan

By Rebecca Melvin

New York, April 3 – Sonoco Products Co. has drawn down $250 million against its existing $500 million five-year revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The revolver facility is committed from Sonoco’s bank group through July 2022, and the proceeds that have been drawn down will be used to repay commercial paper and for general corporate purposes

The company also entered into a $100 million 364-day term loan facility with U.S. Bank NA.

The full amount is being drawn on April 6 with proceeds being used for general corporate purposes.

Borrowings will bear interest at Libor plus an initial margin of 125 basis points. There is no required amortization on the new loan and repayment can be accelerated at any time at Sonoco’s discretion.

Sonoco Products is a Hartsville, S.C., maker of paperboard-based and other packaging products.

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