Moody's rates Silgan loans Ba1

Moody's Investors Service said it assigned Ba1 ratings to Silgan Holdings Inc.'s proposed $1 billion senior secured multicurrency revolver due January 2019, $365 million senior secured term loan A due January 2020, C$70 million senior secured term loan A due January 2020 and €220 million senior secured term loan A due January 2020.

The company's Ba1 corporate family and Ba1-PD probability of default ratings remain unchanged.

The outlook is stable.

Proceeds will be used to refinance the existing term loans and revolver. The transaction is leverage neutral.

The rating reflects the consolidated industry structure in the company's metals segment (food can and closures) and strong market shares and contract structures in food cans.

The rating also reflects the significant onsite presence with customers in the food can segment and the significant percentage of custom products in the plastics segment. The company remains focused on cost cutting and productivity and is expanding into higher growth markets. Silgan also maintains good liquidity.

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