Silgan Holdings to hold bank meeting Thursday for $800 million credit facility

By Sara Rosenberg

New York, April 23 - Silgan Holdings Inc. is expecting to launch its new $800 million senior secured credit facility on Thursday to top tier agents, according to a syndicate source. Deutsche Bank and Bank of America are co-lead arrangers on the deal. Salomon Smith Barney and Morgan Stanley are top tier agents in the syndicate.

The loan consists of a $400 million six-year revolver with an interest rate of Libor plus 200 basis points, a $100 million six-year term A with an interest rate of Libor plus 200 basis points and a $300 million 61/2-year term B with an interest rate of Libor plus 250 basis points, according to the syndicate source. The credit facility agreement also contains provisions for an incremental uncommitted term loan of up to $250 million, according to a company press release.

"The Company anticipates that the covenants under the new credit facility will be generally no more restrictive than the covenants under the Company's existing U.S. senior secured credit facility," the release said.

Security for the loan is a first priority perfected lien on all assets and stock of the company and its subsidiaries.

Proceeds from the new loan and from an issuance of an additional amount of its 9% senior subordinated debentures due 2009 will be used to refinance in full its existing U.S. senior secured credit facility, according to the release. The notes are being offered to institutional buyers under Rule 144A; the company priced the $200 million offering Tuesday via joint bookrunners Morgan Stanley, Deutsche Bank Securities Inc. and Salomon Smith Barney.

Moody's Investors Service rates the Stamford, Conn. manufacturer of metal and plastic consumer goods packaging products company's proposed loan Ba2. Standard & Poor's rates the proposed loan BB-.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.