Sonoco Products intends to price three series of green notes

By William Gullotti

Buffalo, N.Y., Jan. 11 – Sonoco Products Co. intends to issue three series of fixed-rate notes, according to a 424B5 filing with the Securities and Exchange Commission.

There is a special mandatory redemption clause connected to Sonoco’s acquisition of Ball Metalpack. If the deal is not consummated on or before June 20, 2023, the notes will be called. If the agreement is terminated prior to the par call date, the notes will be redeemed at 101 plus interest. After the par call date, under the same circumstances, the notes will be called at par plus interest.

The notes will also feature a separate par call.

BofA Securities, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunning managers for the offering.

Proceeds will be used, together with borrowings under the company’s expected $300 million term loan facility and commercial paper borrowings, to fund the cash consideration payable for the aforementioned Ball Metalpack acquisition, which qualifies as an eligible green project.

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

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