Sonoco Products Co. Reports Material Definitive Agreement

TL;DR

SONOCO just signed a big deal, could affect their finances.

AI Summary

On July 12, 2024, Sonoco Products Company entered into a Material Definitive Agreement related to a financial obligation. The company, incorporated in South Carolina with its principal executive offices in Hartsville, reported this event on July 16, 2024.

Why It Matters

This filing indicates Sonoco Products Co. has entered into a significant agreement that could impact its financial obligations and future operations.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements and financial obligations can introduce financial risks and operational changes that warrant careful consideration.

Key Players & Entities

• Sonoco Products Company (company) — Registrant
• July 12, 2024 (date) — Date of earliest event reported
• July 16, 2024 (date) — Date of report
• South Carolina (location) — State of incorporation
• Hartsville (location) — Principal executive offices

FAQ

Key Financial Figures

• $700 million — ompany with the ability to borrow up to $700 million on an unsecured basis (the "Term Loan F
• $4 billion — acility in an aggregate amount of up to $4 billion previously described in the Company's C
• $3.3 billion — a result, an aggregate amount of up to $3.3 billion in bridge facility commitments remain.

Filing Documents

• tm2419590d1_8k.htm (8-K) — 30KB
• tm2419590d1_ex10-1.htm (EX-10.1) — 664KB
• 0001104659-24-080205.txt ( ) — 1012KB
• son-20240712.xsd (EX-101.SCH) — 3KB
• son-20240712_lab.xml (EX-101.LAB) — 33KB
• son-20240712_pre.xml (EX-101.PRE) — 22KB
• tm2419590d1_8k_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On July 12, 2024, Sonoco Products Company (the "Company") entered into a credit agreement with the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent (the "Term Credit Agreement"). The Term Credit Agreement provides the Company with the ability to borrow up to $700 million on an unsecured basis (the "Term Loan Facility") to finance a portion of the cash consideration for the Company's pending acquisition of Titan Holdings I B.V.. Funding of the Term Loan Facility is expected to take place substantially concurrently with the closing of the acquisition. The aggregate amount of the commitments under the Term Credit Agreement have replaced a corresponding amount of the commitments in respect of the 364-day senior unsecured bridge term loan facility in an aggregate amount of up to $4 billion previously described in the Company's Current Report on Form 8-K filed on June 24, 2024, in accordance with the terms of the bridge facility commitment letter. As a result, an aggregate amount of up to $3.3 billion in bridge facility commitments remain. The Company expects to replace these remaining commitments with cash on hand and through one or more capital markets transactions, subject to market conditions and other factors, prior to the closing of the acquisition. Borrowings under the Term Loan Facility, net of any prepayments, will become payable in full on the second anniversary of the Funding Date (as defined in the Term Credit Agreement). Borrowings under the Term Loan Facility 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 (such borrowings, "Term SOFR Loans"), (ii) a base rate, 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, an adjustment of 10 basis points. There is no requir

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description of Exhibit 10.1* Term Credit Agreement, dated as of July 12, 2024, by and among the Company, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent. 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: July 16, 2024 By: /s/ Robert R. Dillard Robert R. Dillard Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR