Sonoco Products Co. Enters Material Definitive Agreement

TL;DR

SONOCO just signed a big deal, watch their financials.

AI Summary

On May 3, 2024, Sonoco Products Company entered into a material definitive agreement related to a financial obligation. The company, headquartered in Hartsville, South Carolina, filed this 8-K report with the SEC detailing the specifics of this agreement.

Why It Matters

This filing indicates a significant new financial commitment or obligation for Sonoco Products Co., which could impact its financial structure and future operations.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements can introduce new financial obligations or strategic shifts that carry inherent risks.

Key Numbers

• 001-11261 — SEC File Number (Identifies the company's filing with the SEC.)
• 57-0248420 — IRS Employer Identification Number (Company's tax identification number.)

Key Players & Entities

• SONOCO PRODUCTS CO (company) — Registrant
• May 3, 2024 (date) — Date of earliest event reported
• Hartsville, South Carolina (location) — Principal executive offices location
• 001-11261 (other) — Commission File Number
• 57-0248420 (other) — I.R.S. Employer Identification Number

FAQ

Key Financial Figures

• $350 million — Company's revolving credit facility by $350 million to an aggregate amount of $1,250 millio
• $1,250 million — $350 million to an aggregate amount of $1,250 million and extends the maturity date to May 3,
• $750 million — 500 million commercial paper program by $750 million to $1,250 million. The commercial paper

Filing Documents

• son-20240503.htm (8-K) — 29KB
• amendedandrestatedcreditag.htm (EX-10.1) — 983KB
• image_0.jpg (GRAPHIC) — 1KB
• image_1.jpg (GRAPHIC) — 1KB
• 0000091767-24-000032.txt ( ) — 1304KB
• son-20240503.xsd (EX-101.SCH) — 2KB
• son-20240503_lab.xml (EX-101.LAB) — 21KB
• son-20240503_pre.xml (EX-101.PRE) — 12KB
• son-20240503_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On May 3, 2024, Sonoco Products Company (the "Company") entered into an Amended and Restated Credit Agreement (the "Agreement") to extend the maturity and make certain other changes to the terms under the Company's existing five-year credit agreement dated June 21, 2021. The Agreement increases the commitments under the Company's revolving credit facility by $350 million to an aggregate amount of $1,250 million and extends the maturity date to May 3, 2029. The Company also increased its $ 500 million commercial paper program by $750 million to $1,250 million. The commercial paper program will continue to be supported by the revolving credit facility. Borrowings under the Agreement will bear interest at a fluctuating rate per annum equal to, at the Company's option, (i) the forward-looking Secured Overnight Financing Rate term rate ("Term SOFR" and such borrowings, "Term SOFR Loans"), (ii) a base rate set forth in the Agreement, or (iii) a combination thereof, plus, in each case, an applicable margin calculated based on the Company's credit ratings and, in the of case of Term SOFR Loans, a SOFR Adjustment (as defined in the Agreement) of 10 basis points. The margin currently applicable based on the pricing grid in the Agreement and the Company's current credit rating, together with the SOFR Adjustment, is 125.0 basis points. The Agreement contains various customary representations and warranties and affirmative and negative covenants, as more fully described in the Agreement. The Agreement also contains various customary events of default (subject to grace periods, as applicable) including, among others: nonpayment of principal, interest or fees; breach of covenant; payment default on, or acceleration under, certain other material indebtedness; inaccuracy of the representations or warranties in any material respect; bankruptcy or insolvency; inability to pay debts; certain unsatisfied judgments; certain ERISA-re

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description of Exhibit 10.1* Amended and Restated Credit Agreement, dated as of May 3, 2024, by and among the Company, Bank of America, N.A., and the other parties thereto 104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). * Certain schedules and attachments have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to provide, on a supplemental basis, a copy of any omitted schedules and attachments to the Securities and Exchange Commission or its staff upon request. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SONOCO PRODUCTS COMPANY Date: May 7, 2024 By: /s/ Robert R. Dillard Robert R. Dillard Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR