BofA Provides $150MM Facility to Support Sonoco Acquisition
Sonoco Products entered into a three-year, $150 million term loan facility with Bank of America.
The full $150 million was drawn from this facility on March 13, 2017, and the proceeds, along with cash on hand and proceeds from the issuance of commercial paper, were used to fund the acquisition of Packaging Holdings and subsidiaries, including Peninsula Packaging, on March 14, 2017.
According to a related 8-K, the loan provided by Bank of America has a three-year fixed term with no amortization. Interest is assessed at LIBOR+115.
Sonoco acquired Peninsula Packaging for approximately $230 million from funds managed by Odyssey Investment Partners and other shareholders.