Sonoco sees early tenders of $63.21 million 5.75% notes, pricing set

By Wendy Van Sickle

Columbus, Ohio, May 12 – Sonoco Products Co. announced the pricing and early results of its cash tender offer for up to $300 million of its $600 million outstanding 5.75% senior notes due 2040 (Cusip: 835495AJ1), according to a news release.

The company received tenders for $63,206,000 of the notes by the early deadline at 5 p.m. ET on May 11.

The company will accept all notes tendered by the early deadline for purchase.

The notes will be repurchased at a total consideration per $1,000 principal amount of $1,296.73, with pricing based on the 1.625% Treasury due Nov. 15, 2050 plus a fixed spread of 120 basis points. The total consideration includes an early tender premium $50 per $1,000 of notes tendered before the early tender deadline. Pricing was determined at 10 a.m. ET on May 12.

Interest will be paid to the relevant settlement date.

Early settlement is planned for May 13.

The early tender deadline was also the withdrawal deadline.

The offer will expire at 11:59 p.m. ET on May 25. Final settlement is expected for May 27.

There are no guaranteed delivery provisions for this offer.

If the cap is reached, tenders may be subject to proration.

J.P. Morgan Securities LLC is the dealer manager for the offer (866 834-4666, 917 808-9154).

D.F. King & Co., Inc. is the information agent and tender agent (212 269-5550, 866 356-7814).

Sonoco Products is a Hartsville, S.C., manufacturer of paperboard-based and other industrial and consumer packaging products.

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