Silgan refinances with $1 billion revolver, $365 million term loan

By Angela McDaniels

Tacoma, Wash., Jan. 14 - Silgan Holdings Inc. said it completed a new senior secured credit facility that provides for a $365 million term loan, a $1 billion multicurrency revolving loan facility, a €220 million term loan A and a C$70 million term loan A.

The new facility refinanced the company's existing senior secured credit facility and provides more favorable pricing as compared to the existing credit facility, additional borrowing capacity, longer maturities and greater flexibility to, among other things, make acquisitions, pay dividends, repurchase stock and incur additional debt, according to a company news release.

The term loans mature on Jan. 14, 2020, and the revolver matures Jan. 14, 2019.

The interest rate for dollar loans and euro loans is Libor plus 150 basis points. The interest rate for Canadian dollar loans is either CDOR plus 150 bps or the Canadian prime rate plus 50 bps.

Wells Fargo Securities, LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Goldman Sachs Bank USA were the joint lead arrangers and joint book managers.

The revolver may be used for working capital and other general corporate purposes, including acquisitions, stock repurchases and refinancing of other debt.

The new credit facility also provides the company with an incremental uncommitted multicurrency loan facility for an additional $1.25 billion, which may be increased as provided in the new credit facility and may be used to finance acquisitions and for other permitted purposes.

Silgan makes rigid packaging for shelf-stable food and other consumer goods products. The company is based in Stamford, Conn.

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