On June 8, 2021, Packaging Corporation of America entered into a revolving credit agreement (the new revolving credit agreement) with the lenders and agents named therein. The new credit agreement replaces the company’s old credit agreement (the old credit agreement), dated August 29, 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 the company’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 the company’s senior long-term unsecured debt or the company’s gross leverage ratio and ranges from in the case of LIBOR loans, 0.900% to 1.500% and 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. The company may prepay loans under the new revolving credit agreement at any time without premium or penalty.