Silgan Announces Completion of Amended and Restated Senior Secured Credit Facility
March 24 2017 - 4:30PM
Business Wire
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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version on businesswire.com: http://www.businesswire.com/news/home/20170324005620/en/
Silgan Holdings Inc.Robert B. Lewis, 203-406-3160
Silgan (NASDAQ:SLGN)
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