Silgan reduces term B rate to Libor plus 175 basis points

By Sara Rosenberg

New York, July 21 - Silgan Holdings Inc. amended its term loan B, reducing the interest rate by 25 basis points to Libor plus 175 basis points effective July 15, according to a company news release.

Furthermore, in the second quarter, the company's interest and other debt expense was $15.1 million, a decrease of $5 million when compared to the same period in 2003, due to the refinancing of $500 million of 9% senior subordinated debentures in late 2003 with lower cost 6¾% senior subordinated notes, lower cost of borrowings under its senior secured credit facility and lower average borrowings as a result of debt reductions late in 2003.

"Not only are we experiencing lower interest costs and positive results from capital investments made in recent years, but also benefits from successful acquisitions and rationalization programs initiated last year. As a result, we are increasing our estimated earnings range for 2004 by $0.20 per share," said president and co-chief executive officer Greg Horrigan said in the release.

Silgan is a Stamford, Conn., supplier of consumer goods packaging products.

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