Item 1.01. Entry into a Material Definitive Agreement.

On June 8, 2021, Packaging Corporation of America ("PCA") entered into a revolving credit agreement (the "New Revolving Credit Agreement") with the lenders and agents named therein. The New Revolving Credit Agreement is attached hereto as Exhibit 10.1, which is incorporated by reference herein. The description below does not purport to be complete and is qualified in its entirety by reference to the full text of the New Revolving Credit Agreement. The New Credit Agreement replaces PCA's old Credit Agreement, dated August 29, 2016 (the "Old Credit Agreement"), which was described in Item 1.01 to PCA's Current Report on Form 8-K filed with the Securities and Exchange Commission on September 1, 2016. The term of the Old Credit Agreement would have expired on August 29, 2021.

The New Revolving Credit Agreement is a $350 million unsecured revolving credit facility, which has a five-year term and is available for borrowings for general corporate purposes. Except for approximately $23.5 million of letters of credit, no borrowings were outstanding under the Old Credit Agreement and no borrowings are outstanding under the New Revolving Credit Agreement. Borrowings under the New Revolving Credit Agreement are guaranteed by PCA's material subsidiaries.

Loans under the New Revolving Credit Agreement bear interest at the LIBOR rate or the base rate plus the applicable margin described below. The agreement contains customary LIBOR successor rate provisions. The applicable margin is determined based upon the public ratings of PCA's senior long-term unsecured debt or PCA's gross leverage ratio and ranges from (a) in the case of LIBOR loans, 0.900% to 1.500% and (b) in the case of base rate loans, 0.000% to 0.500% for revolving loans.

The New Revolving Credit Agreement contains customary affirmative and negative covenants, including limitations on liens, mergers and consolidations, sales of assets and subsidiary indebtedness. The New Revolving Credit Agreement has two financial covenants, a maximum leverage ratio and a minimum interest coverage ratio, each calculated on a consolidated basis.

PCA may prepay loans under the New Revolving Credit Agreement at any time without premium or penalty.

Item 9.01. Financial Statements and Exhibits.

(D) Exhibits





10.1      Credit Agreement, dated June 8, 2021 between Packaging Corporation of
        America and the lenders and agents named therein

104     Cover Page Interactive Data File (embedded within the Inline XBRL
        document)

--------------------------------------------------------------------------------

© Edgar Online, source Glimpses