Sonoco Products Company amended its existing credit agreement to establish two new term loan facilities totaling $800 million. The company immediately drew $500 million to refinance an existing term loan, extending its debt maturity profile. The remaining $300 million is available as a delayed-draw term loan for future refinancing needs.
Key Details
- New Facilities: The amendment, dated September 25, 2026, creates a $400 million Tranche A term loan maturing December 31, 2029, and a $400 million Tranche B delayed-draw term loan maturing December 31, 2031.
- Initial Borrowing & Use of Proceeds: Sonoco borrowed $500 million ($400M from Tranche A, $100M from Tranche B) on September 25, 2026, to refinance a $500 million syndicated term loan that was scheduled to mature in August 2028.
- Future Availability: The remaining $300 million under the Tranche B term loan is available for the company to draw within 12 months of the closing date and is expected to be used for refinancing other outstanding indebtedness.