STAMFORD, Conn.--(BUSINESS WIRE)--Jan. 14, 2014--
Silgan Holdings Inc. (Nasdaq:SLGN), a leading supplier of rigid
packaging for shelf-stable food and other consumer goods products,
announced today that it completed a new senior secured credit facility
which refinanced its existing senior secured credit facility and will
provide greater flexibility with regard to its strategic initiatives.
Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith
Incorporated, Citigroup Global Markets Inc. and Goldman Sachs Bank USA
were the joint lead arrangers and joint book managers for the new
syndicated credit facility.
“We are pleased to announce the successful syndication of our new senior
secured credit facility,” said Bob Lewis, Executive Vice President and
Chief Financial Officer. “Our new credit facility provides more
favorable pricing as compared to our existing credit facility, as well
as significant additional borrowing capacity, longer maturities and
greater flexibility, leaving us well positioned to continue to pursue
various strategic alternatives,” concluded Mr. Lewis.
The new credit facility provides the Company with US $365 million of US
A term loans, €220 million of Euro A term loans, Cdn $70 million of
Canadian A term loans and a US $1.0 billion multicurrency revolving loan
facility. In addition, the new credit facility provides greater
flexibility to the Company to, among other things, make acquisitions,
pay dividends, repurchase stock and incur additional debt.
The term loans provided under the new credit facility refinanced the
term loans under the prior credit facility, and the new term loans
mature on January 14, 2020. The Company may use revolving loans under
the new 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 January 14, 2019. The
new 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 new credit facility
and may be used to finance acquisitions and for other permitted purposes.
Under the new 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 1.50% and for term loans and revolving loans maintained
as base rate or prime rate loans the margin will be 0.50%. The margins
for term loans and revolving loans are subject to adjustment quarterly
based upon financial ratios.
Silgan Holdings is a leading supplier of rigid packaging for
shelf-stable food and other consumer goods products with annual net
sales of approximately $3.6 billion in 2012. Silgan operates 88
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
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. 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 2012 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
Source: Silgan Holdings Inc.
Silgan Holdings Inc.
Robert B. Lewis, 203-406-3160