STAMFORD, Conn.--(BUSINESS WIRE)--Mar. 24, 2017--
Silgan Holdings Inc. (Nasdaq:SLGN), a leading supplier of rigid
packaging for consumer goods products, announced today that it completed
an amendment and restatement of its existing senior secured credit
facility which extends the maturity dates for its senior secured credit
facility, provides additional borrowing capacity for the Company and
provides the Company with greater flexibility with regard to its
strategic initiatives. Wells Fargo Securities, LLC, Merrill Lynch,
Pierce, Fenner & Smith Incorporated, Goldman Sachs Bank USA, HSBC Bank
USA, National Association, Mizuho Bank, Ltd. and Coӧperatieve Rabobank
U.A., New York Branch, were the joint lead arrangers and joint book
managers for the amended and restated credit facility.
“We are pleased to announce the successful completion of our amended and
restated senior secured credit facility,” said Bob Lewis, Executive Vice
President and Chief Financial Officer. “We continue to enjoy strong
access to the credit markets, as evidenced by this transaction and our
recent US Dollar and Euro senior notes issuances completed in February
2017. Our amended and restated credit facility extends maturities,
provides additional borrowing capacity and provides greater flexibility,
leaving us well positioned to continue to pursue various strategic
alternatives,” concluded Mr. Lewis.
The amended and restated credit facility provides the Company with a US
$1.2 billion multicurrency revolving loan facility and Cdn $45.5 million
of Canadian A term loans. Additionally, the amended and restated credit
facility provides the Company with a delayed draw US A term loan of US
$800 million. This delayed draw US A term loan will be used by the
Company to fund $800 million of the purchase price to be paid by the
Company in connection with its previously announced acquisition of the
specialty closures and dispensing systems business of WestRock Company
(NYSE:WRK), which is now expected to close in early April subject to the
satisfaction of applicable conditions. This delayed draw US A term loan
replaces the US $800 million incremental term loan the Company had
intended to borrow to fund the purchase price for such acquisition.
The term loans provided under the amended and restated credit facility
mature on March 24, 2023. The Company may use revolving loans under the
amended and restated credit facility for working capital and other
general corporate purposes, including acquisitions, stock repurchases
and refinancing of other debt. The revolving loan facility matures on
March 24, 2022. The amended and restated credit facility also provides
the Company with an incremental uncommitted multicurrency loan facility
for an additional US $1.25 billion, which may be increased as provided
in the amended and restated credit facility and may be used to finance
acquisitions and for other permitted purposes. In addition, the amended
and restated credit facility provides the Company with greater
flexibility to, among other things, make further acquisitions and incur
additional debt.
Under the amended and restated credit facility, the interest rate for US
dollar loans will be either the Eurodollar Rate or the base rate plus a
margin, the interest rate for Euro loans will be the Eurodollar Rate
plus a margin and the interest rate for Canadian dollar loans will be
either the CDOR Rate or the Canadian prime rate plus a margin.
Initially, for term loans and revolving loans maintained as Eurodollar
Rate or CDOR Rate loans the margin will be 2.00% and for term loans and
revolving loans maintained as base rate or prime rate loans the margin
will be 1.00%. The margins for term loans and revolving loans are
subject to adjustment quarterly based upon financial ratios.
Silgan is a leading supplier of rigid packaging for consumer goods
products with annual net sales of approximately $3.6 billion in 2016.
Silgan operates 87 manufacturing facilities in North and South America,
Europe and Asia. Silgan is a leading supplier of metal containers in
North America and Europe, and a leading worldwide supplier of metal,
composite and plastic vacuum closures for food and beverage products. In
addition, Silgan is a leading supplier of plastic containers for
shelf-stable food and personal care products in North America.
Statements included in this press release which are not historical facts
are forward looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995 and
the Securities Exchange Act of 1934, as amended. Such forward looking
statements are made based upon management’s expectations and beliefs
concerning future events impacting the Company and therefore involve a
number of uncertainties and risks, including, but not limited to, those
described in the Company’s Annual Report on Form 10-K for 2016 and other
filings with the Securities and Exchange Commission. Therefore, the
actual results of operations or financial condition of the Company could
differ materially from those expressed or implied in such forward
looking statements.
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Source: Silgan Holdings Inc.
Silgan Holdings Inc.
Robert B. Lewis, 203-406-3160