Document/ExhibitDescriptionPagesSize 1: 8-K Current Report HTML 39K
2: EX-10.1 Material Contract HTML 867K
7: R1 Cover Page HTML 46K
10: XML IDEA XML File -- Filing Summary XML 13K
8: XML XBRL Instance -- son-20221202_htm XML 23K
9: EXCEL IDEA Workbook of Financial Reports XLSX 8K
4: EX-101.DEF XBRL Definitions -- son-20221202_def XML 38K
5: EX-101.LAB XBRL Labels -- son-20221202_lab XML 77K
6: EX-101.PRE XBRL Presentations -- son-20221202_pre XML 38K
3: EX-101.SCH XBRL Schema -- son-20221202 XSD 11K
11: JSON XBRL Instance as JSON Data -- MetaLinks 13± 19K
12: ZIP XBRL Zipped Folder -- 0000091767-22-000070-xbrl Zip 161K
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
i☐
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
i☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
i☐
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
i☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title
of each class
Trading symbol(s)
Name of each exchange on which registered
iNo par value common stock
iSON
iNew
York Stock Exchange, LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company i☐
If an emerging growth company,
indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01 Entry into a Material Definitive Agreement
On December 2, 2022, Sonoco Products Company (the “Company”) entered into a credit agreement with a consortium of banks and JPMorgan Chase Bank, N.A., as Administrative Agent (the “Term Loan Agreement”). The Term
Loan Agreement provides the Company with the ability to borrow up to $400 million on an unsecured basis (the “Term Loan Facility”) the proceeds of which will be used for general corporate purposes, including repayment of certain short-term debt. The full $400 million available under the Term Loan Facility was drawn on December 2, 2022.
Borrowings under the Term Loan Facility, net of any prepayments, will become payable in full on December 1, 2023. 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”) or (ii) a base rate, plus, in each case, an applicable margin calculated based on the Company’s credit ratings. The Company has designated its borrowings under the Term Loan Facility as Term SOFR Loans, and the margin currently applicable to Term SOFR Loans is 1.475%. There is no required amortization, and voluntary prepayments of borrowings under the Term Loan Facility are permissible without penalty, subject to certain conditions pertaining to minimum notice and minimum prepayment and reduction amounts as described in the Term Loan Agreement.
The Term Loan Agreement contains various customary representations and warranties and affirmative and negative covenants, as more fully described in the Term
Loan Agreement. The Term Loan 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-related events; the invalidity or unenforceability of the Term Loan Agreement or certain other documents executed in connection therewith; and the occurrence of a change of control.
The foregoing description of the Term Loan Agreement and the Term Loan Facility does not purport to be complete and is qualified in its entirety by reference to the full and complete terms of the Term Loan Agreement, which is filed as Exhibit
10.1 hereto and incorporated herein by reference.
Certain of the lenders under the Term Loan Facility and/or their affiliates have in the past performed, and may in the future from time to time perform, investment banking, financial advisory, lending and/or commercial banking services, or other services for the Company and/or its subsidiaries (including in connection with the transactions described in this Current Report on Form 8-K), for which they have received, and may in the future receive, customary compensation and expense reimbursement.
Item 2.03Creation
of a Direct Financial Obligation or an Obligation under an Off-Balance
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
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.