HARTSVILLE, S.C. (News release) -- Sonoco, one of the largest sustainable global packaging companies, announced the completion of its inaugural offering of green bonds to support the Company's sustainability strategy. The green bonds total $1.2 billion aggregate principal amount of unsecured notes, consisting of $400 million aggregate principal amount of 1.80% Notes due 2025, $300 million aggregate principal amount of 2.25% Notes due 2027, and $500 million aggregate principal amount of 2.85% Notes due 2032.
"We are proud to have successfully placed our first green bonds, one of the largest such offerings in the U.S. packaging industry," said Julie Albrecht, Vice President and Chief Financial Officer. "Sonoco is dedicated to operating with sustainability at the forefront of our strategy and committed to making investments to expand circular economy adapted products."
Sonoco intends to allocate an amount equal to the net proceeds from the offering, together with borrowings under a new term loan facility and its commercial paper program, to fund the $1.35 billion cash consideration payable in connection with its previously announced plans to acquire Ball Metalpack, a leading manufacturer of sustainable, permanently recyclable metal packaging. The acquisition of Ball Metalpack qualifies as an Eligible Project under Sonoco's Green Financing Framework. Further details on Sonoco's Green Financing Framework are available on the Company's website.
Institutional Shareholder Services ESG (ISS ESG), a leading global provider of environmental, social and corporate governance research and ratings, reviewed Sonoco's Green Financing Framework and published a Second Party Opinion (SPO), which can be reviewed on ISS ESG's website. ISS ESG's review found that the planned use of proceeds is consistent with Sonoco's sustainability strategy and material environmental, social and governance (ESG) initiatives. ISS ESG's SPO offers investors additional insights into the alignment of Sonoco's Green Financing Framework and the 2021 Green Bond Principles published by the International Capital Market Association.
In connection with this offering, J.P. Morgan Securities LLC served as joint book-running manager and sustainability structuring agent, and Wells Fargo Securities served as joint-book running manager.
A shelf registration statement relating to these securities was previously filed with and became effective by rule of the Securities and Exchange Commission. The offering is being made solely by means of a prospectus. You may get the preliminary prospectus supplement and accompanying prospectus for free by visiting EDGAR on the U.S. Securities and Exchange Commission website at www.sec.gov. Alternatively, copies of the preliminary prospectus supplement and accompanying prospectus and, when available, the final prospectus supplement relating to the offering may be obtained by contacting J.P. Morgan Securities LLC, 383 Madison Avenue New York, New York 10179, Attn: Investment Grade Syndicate Desk, Telephone: 1-212-834-4533; or Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, Minnesota 55402, Attn: WFS Customer Service, E-Mail: firstname.lastname@example.org, Toll-Free: 1-800-645-3751.
This news release does not constitute an offer to sell or the solicitation of any offer to buy any securities, nor share there be any sale of securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.