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Sonoco investors tender $111.73 million 5.625% notes, 9.2% debentures
By Devika Patel
Knoxville, Tenn., Nov. 23 - Sonoco Products Co. said it completed a cash tender offer for up to $146,634,823 of its $150 million 5.625% notes due 2016 and $41,305,000 of its 9.2% debentures due 2021. The offers began on Oct. 25.
As of 5 p.m. ET on Nov. 22, the expiration date, holders had tendered $74.75 million, or 49.83%, of the 5.625% notes and $36.984 million, or 89.54%, of the 9.2% notes.
For each $1,000 of notes, holders will receive $1,170.06 per 5.625% notes and $1,418.18 per 9.2% notes tendered by 5 p.m. ET on Nov. 5, the early tender date, which includes a $30.00 early tender premium.
Holders who tendered their notes after the early tender date but by the expiration time will receive the total payment minus $30.00.
Payments also will include accrued interest up to but excluding the settlement date.
The total payment was based on the bid-side price of the reference security plus a fixed spread minus accrued interest up to but excluding the settlement date.
Pricing for the 5.625% notes was based on a spread of 125 basis points over the 1.25% Treasury due Sept. 30, 2015; for the 9.2% notes, it was based on a spread of 175 bps over the 2.525% Treasury due Aug. 15, 2020.
The reference yields were set at 1.095% for the 5.625% notes and at 4.282% for the 9.2% notes, as of 2 p.m. ET on Nov. 5.
The tender offer yields were 2.345% for the 5.625% notes and 2.532% for the 9.2% notes.
Sonoco will purchase the bonds using proceeds from its previously announced offering of senior notes as well as other available cash.
Bank of America Merrill Lynch (888 292-0070 or collect 980 388-9217) and J.P. Morgan (866 834-4666 or collect 212 834-3424) are the dealer managers. Global Bondholder Services Corp. (212 430-3774 or 866 470-3900) is the depositary and information agent.
Sonoco Products is a Hartsville, S.C., manufacturer of paperboard-based and other industrial and consumer packaging products.
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