Moody’s assigns Baa2 to Sonoco notes

Moody’s Investors Service said it assigned a Baa2 rating to Sonoco Products Co.’s proposed $600 million of senior unsecured notes.

The company intends to use the proceeds for general corporate purposes, which may include the repayment of debt.

“We view liquidity as excellent over the next 12 months, but funding needs will increase starting in the second quarter of 2021 due to a number of maturities. The company had approximately $400 million of cash on hand in April after it drew $250 million on its revolver and put in place a number of term loans to repay its commercial paper borrowings. With the net proceeds of the new bond issuance the company will have approximately $1 billion of cash on hand to cover its cash needs of approximately $500 to $550 million, including $170 million in capex and about $170 million in dividends,” the agency said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.