Silgan plans $900 million incremental delayed-draw term loan A-1

By Sara Rosenberg

New York, April 23 – Silgan Holdings Inc. has a commitment for a $900 million incremental delayed-draw term loan A-1 due May 30, 2024 for its acquisition of Albea Beauty Holdings SA’s dispensing business, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Pricing on the term loan A-1 is expected at Libor plus 175 basis points initially. After delivery of the company’s financial statements for the fiscal quarter ending June 30, 2020, pricing can range from Libor plus 125 bps to 175 bps based on total net leverage.

Starting on May 27, the company will pay a ticking fee of 30 bps.

Amortization on the loan is 10% per annum.

Wells Fargo Bank is the administrative agent.

Closing on the $900 million acquisition is expected in the first half of this year.

Silgan is a Stamford, Conn.-based producer of rigid packaging for consumer goods.

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