Sonoco Products Amends Credit Agreement to Add $800 Million in Term Loans

On September 25, 2026, Sonoco Products Company entered into a first amendment to its Credit Agreement, dated August 7, 2023. The agreement was executed among Sonoco, a consortium of Farm Credit System institutions, and CoBank, ACB, which serves as the administrative agent.

The amendment introduces two new term loan facilities totaling $800 million. The first, a $400 million Tranche A Term Loan, matures on December 31, 2029. The second, a $400 million Tranche B Term Loan, matures on December 31, 2031.

On the closing date, Sonoco borrowed $500 million under the amended agreement. This included $400 million under the Tranche A Term Loan and $100 million under the Tranche B Term Loan. The company utilized $500 million of these funds to refinance an existing $500 million syndicated term loan scheduled to mature in August 2028. The remaining $300 million under the Tranche B Term Loan is available for future draws, with a maximum of three draws of at least $25 million each within 12 months of the closing date.

Interest rates for both facilities are determined at the Company's option, based on either SOFR or the base rate, plus an applicable margin. The margin for the Tranche A Term Loan ranges from 1.575% to 2.075% for SOFR borrowings and 0.575% to 1.075% for base rate borrowings. The margin for the Tranche B Term Loan ranges from 1.675% to 2.175% for SOFR borrowings and 0.675% to 1.175% for base rate borrowings. These margins are based on the Company's senior unsecured long-term debt ratings from S&P and/or Moody's.

The Tranche B Term Loan requires a ticking fee on the daily unused amount of commitments, ranging from 0.100% to 0.225% per year. Neither term loan tranche requires scheduled principal payments before maturity, and the Company may prepay either tranche at any time without premium or penalty.

The Amended Credit Agreement includes customary representations, warranties, affirmative and negative covenants, and events of default, such as nonpayment of principal or interest, breach of covenant, bankruptcy, and change of control.