Sonoco Products Company entered into a Term Credit Agreement on March 23, 2026, providing an unsecured delayed draw term loan facility of up to $300 million, drawable through September 13, 2026, maturing two years after funding. This agreement enhances liquidity while imposing financial covenants including minimum Book Net Worth and 3.25x Interest Coverage Ratio.
Key takeaways
Term Credit Agreement dated March 23, 2026, with lenders and Wells Fargo as Administrative Agent
$300 million unsecured delayed draw term loan facility
Drawable on or prior to September 13, 2026; matures on second anniversary of Funding Date
Interest at Term SOFR plus 0.850%-1.100% or Base Rate plus 0.000%-0.100% based on credit ratings
No required amortization; voluntary prepayments allowed without penalty
Covenants: min Book Net Worth ≥80% of March 31, 2024 level; min Consolidated Interest Coverage Ratio 3.25:1.00