Moody’s cuts Silgan, debt; rates notes Ba3

Moody's Investors Service said it downgraded Silgan Holdings, Inc.’s corporate family rating to Ba2 from Ba1 and probability of default rating to Ba2-PD from Ba1-PD.

The agency confirmed the senior secured bank credit facility at Ba1 and downgraded the senior unsecured rating to Ba3 from Ba2.

Moody's also assigned a Ba3 rating to the proposed $300 million dollar-denominated senior notes due 2025 as well as a Ba3 rating to the proposed €450 million euro senior notes due 2025. In addition, it assigned a speculative grade liquidity rating of SGL-2, reflecting good liquidity.

The outlook is stable.

Proceeds from the new notes will be used to pay the revolver balance, partially repay existing term loan debts and repay certain foreign bank revolving and term loans of certain non-U.S. subsidiaries, as well as pay related fees and expenses for the transaction.

The downgrade concludes the review initiated on Jan. 24 when the company announced that it entered into a definitive agreement with WestRock Co. to acquire its specialty closures and dispensing systems business for $1.025 billion in an all cash transaction.

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