S&P rates Silgan loans BBB-

Standard & Poor's said it assigned a rating of BBB- and a recovery rating of 2 to Silgan Holdings Inc.'s proposed senior secured credit facilities, indicating an expectation for 70% to 90% expected recovery in a default.

The senior secured credit facilities include a $800 million revolving credit facility maturing in 2016, $400 million term loan A, €335 million term loan A and C$81 million term loan. All term loans will be due in 2017.

The company plans to use proceeds to repay its existing credit facilities and for fees and expenses.

All other ratings on Silgan, including the BB+ corporate credit rating, are unchanged.

The outlook remains stable.

The ratings reflect the company's satisfactory business position as a major North American producer of rigid consumer goods packaging and its steady earnings and free cash flow generation, the agency said.

Silgan also has demonstrated its ability to maintain a capital structure consistent with the rating despite periodic acquisitions, S&P said.

Somewhat aggressive financial policies and other risks associated with the company's growth strategy via acquisitions offset these strengths, the agency added.

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