Sonoco gets $150 million term loan in connection with acquisition

By Angela McDaniels

Tacoma, Wash., Nov. 7 - Sonoco Products Co. entered into a new $150 million three-year term loan on Monday in connection with its upcoming acquisition of Tegrant Holding Corp., according to an 8-K filing with the Securities and Exchange Commission.

The term loan has amortization payments of $3.75 million per quarter beginning with the quarter ending March 31.

The lenders are Bank of America, NA, JPMorgan Chase Bank, NA and Wells Fargo Bank, NA. Bank of America is also the administrative agent. Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint lead arrangers.

Sonoco said the terms and conditions are substantially the same as those for its credit facility dated Oct. 18, 2010, which carries an interest rate of Libor plus 110 basis points to 180 bps and a facility fee of 15 bps to 45 bps.

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

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