Sonoco, a global packaging company, entered into a five-year, $750 million revolving credit facility with a syndicate of banks. The credit agreement replaces an existing credit facility entered into on July 20, 2017, and reflects substantially the same terms and conditions.
BofA Securities, Wells Fargo Securities, JPMorgan Chase, U.S. Bank and TD Securities are the joint lead arrangers under the credit agreement. Bank of America is the administrative agent and Wells Fargo Bank, JPMorgan Chase, U.S. Bank and TD Bank are co-syndication agents. MUFG Bank is the documentation agent.
“We are pleased to upsize our prior $500 million committed credit facility with a new $750 million revolver and extend the maturity date for an additional five years. This new credit facility provides us with additional financial flexibility and reflects our strong credit profile. It also illustrates the solid relationships with our commercial banks,” Julie Albrecht, vice president and CFO of Sonoco, said.
Consistent with prior facilities, the new revolving credit facility will support Sonoco’s $500 million commercial paper program. Based on the pricing grid in the credit agreement and Sonoco’s current credit ratings, a London Interbank Offered Rate (LIBOR) borrowing has an all-in drawn margin of 125 basis points.