Business News

Sonoco Prices Note Offering

Tuesday 26. October 2010 - Sonoco (NYSE: SON) today announced that it has priced a public offering of $350 million of 5.75% Senior Notes due 2040. The offering was made pursuant to an effective shelf registration statement.

Concurrent with the commencement of the offering of senior unsecured notes, Sonoco commenced offers to purchase for cash (i) any and all of its outstanding 6.50% notes due 2013 and (ii) up to the maximum aggregate principal amount of its 5.625% notes due 2016 and 9.20% debentures due 2021 that it can purchase for $300,000,000 (exclusive of accrued interest and subject to increase), less any amount it pays to repurchase its 6.50% notes due 2013.

Sonoco intends to use substantially all the net proceeds from the offering of senior notes, together with cash on hand, to fund the purchase price of notes tendered and accepted by it for purchase in the tender offers, including the payment of accrued interest and any applicable premiums. Sonoco intends to use any net proceeds remaining from the offering of senior notes, including if the tender offers are not consummated, for general corporate purposes.

Banc of America Securities LLC, Wells Fargo Securities, LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC acted as joint book-running managers for the offering.