Silgan extends maturities, increases revolver to $1.5 billion

By Wendy Van Sickle

Columbus, Ohio, Nov. 9 – Silgan Holdings Inc. amended its existing senior secured credit facility, increasing the revolver to $1.5 billion from $1.2 billion and providing $1 billion in new term loans to refinance outstanding term and revolving loans used to fund three acquisitions completed in 2021 and the acquisition of the dispensing operations of the Albea Group in 2020, according to a news release.

The amendment also provides Silgan with additional flexibility with regard to its strategic initiatives, the company said.

The amendment extends the maturity date for term loans until Nov. 9, 2027 and the maturity date for the revolver until Nov. 9, 2026.

Silgan may use the $1.5 billion revolver for working capital and other general corporate purposes, including acquisitions, stock repurchases and refinancings of other debt.

The credit agreement also provides for an incremental uncommitted multicurrency loan facility for an additional $1.25 billion, which may be increased and may be used to finance acquisitions and for other permitted purposes. The amendment also provides Silgan with greater flexibility to, among other things, make further acquisitions, incur additional debt and engage in other corporate transactions.

Under the amendment, term loans and revolving loans maintained as eurocurrency rate, Euribor or CDOR rate loans will initially have a margin of 150 basis points, the same a prior to the amendment. The margins for term loans and revolving loans are subject to adjustment quarterly based upon leverage ratio beginning on April 1.

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

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