By Paul A. Harris
Portland, Ore., Feb. 8 – Silgan Holdings Inc. sold two tranches of senior notes due March 15, 2025 (BB-) in an upsized deal that saw both tranches come at the tight ends of yield talk.
The notes in an upsized €650 million tranche priced at par to yield 3¼%. The tranche was upsized from €450 million. The yield printed at the tight end of the 3¼% to 3½% yield talk and tighter than early guidance in the mid-to-high 3% area.
The notes in a $300 million tranche prices at par to yield 4¾%. The yield printed at the tight end of the 4¾% to 5% yield talk and tighter than early guidance in the 5% area.
BofA Merrill Lynch was the lead manager.
Proceeds from the dollar-denominated notes will be used to prepay a portion of the company’s dollar-denominated term loans and repay a portion of the revolving loans under its senior secured credit facility. Proceeds from the euro-denominated notes will be used to prepay all euro term loans and repay a portion of the revolving loans under its senior secured credit facility and to repay foreign bank revolving and term loans of some of the company’s non-U.S. subsidiaries.
The additional proceeds resulting from the €200 million upsizing of the deal will be used to redeem an equivalent dollar amount of the company’s 5% senior notes due 2020.
Silgan is a Stamford, Conn.-based supplier of rigid packaging for consumer goods products.
| Issuer: | Silgan Holdings Inc.
|
| Maturity: | March 15, 2025
|
| Securities: | Senior notes
|
| Lead manager: | BofA Merrill Lynch
|
| Trade date: | Feb. 8
|
| Rating: | S&P: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Euro-denominated notes
|
| Amount: | €650 million, increased from €450 million
|
| Coupon: | 3¼%
|
| Price: | Par
|
| Yield: | 3¼%
|
| Call protection: | Three years
|
| Price talk: | 3¼% to 3½%
|
|
|
| Dollar-denominated notes
|
| Amount: | $300 million
|
| Coupon: | 4¾%
|
| Price: | Par
|
| Yield: | 4¾%
|
| Call protection: | Three years
|
| Price talk: | 4¾% to 5%
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
