Sonoco Products Company (NYSE: SON) entered into a credit agreement establishing a delayed draw term loan facility with an aggregate principal amount of up to $300 million on an unsecured basis. The company announced the arrangement on March 23, 2026, with Wells Fargo Bank, National Association serving as administrative agent.

The facility may be drawn subject to certain conditions on or before September 13, 2026. Borrowings under the term loan facility will become payable in full on the second anniversary of the funding date.

Interest rates on borrowings will fluctuate based on the company's choice between Term SOFR loans, base rate loans, or a combination of both. The applicable margin ranges from 0.850% to 1.100% per annum for Term SOFR loans and 0.000% to 0.100% per annum for base rate loans, calculated based on Sonoco's credit ratings.

The agreement includes no required amortization and permits voluntary prepayments without penalty, subject to minimum notice and prepayment amount conditions. The credit agreement contains standard representations, warranties, and covenants typical for such arrangements.

Financial covenants require Sonoco to maintain a minimum book net worth of at least 80% of book net worth as of March 31, 2024, with certain adjustments, and a minimum consolidated interest coverage ratio of not less than 3.25 to 1.00. The agreement includes customary events of default provisions covering nonpayment, covenant breaches, bankruptcy, insolvency, and change of control situations.