| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for Sonoco Products Co. > News item |
Sonoco signs new $900 million term loan, ups revolver to $900 million
By William Gullotti
Buffalo, N.Y., Aug. 10 – Sonoco Products Co. entered into a $900 million five-year term loan facility with CoBank, ACB as administrative agent and upsized its existing revolver with Bank of America, NA as administrative agent to $900 million on Aug. 7, according to an 8-K filing with the Securities and Exchange Commission.
The new unsecured term loan matures Aug. 7, 2028, with borrowings bearing interest at SOFR plus a margin ranging from 180 basis points to 230 bps. There is also a ticking fee that ranges from 12.5 bps to 25 bps.
The margin and fee are determined by the company’s debt ratings.
At closing, the effective margin was 190 bps.
$600 million was drawn at closing to refinance borrowings under two of the company’s existing credit facilities. The facilities include the company’s $400 million 364-day term loan facility with JPMorgan Chase Bank, NA as administrative agent, which was signed Dec. 2, 2022 and would have been due Dec. 2, and the $300 million three-year term loan facility with Bank of America, NA as administrative agent, which was signed Jan. 21, 2022 and would have been due Jan. 21, 2025.
The remaining $300 million of available commitments is expected to be drawn later in 2023 upon completion of the acquisition of the remaining equity interest in RTS Packaging, LLC from joint venture partner WestRock Co. and one WestRock paper mill.
In addition to acting as administrative agent, CoBank is also a joint lead arranger and joint bookrunner along with AgFirst Farm Credit Bank and Compeer Financial, FLCA.
The amended revolver, originally signed June 30, 2021 for $750 million, was upsized to $900 million by adding CoBank to the facility’s lenders.
No further amendments were made to the five-year revolver, which will continue to support Sonoco’s $500 million commercial paper program.
Sonoco Products is a Hartsville, S.C., manufacturer of paperboard-based and other industrial and consumer packaging products.
© 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.