Moody's lifts Silgan first-lien loan to Ba2

Moody's Investors Service said it raised the ratings on Silgan Holdings, Inc.'s senior secured first-lien credit facilities and corporate family rating to Ba2 from Ba3 and changed the outlook to stable from positive.

Silgan recently announced that it is entering into a €200 million term loan under its existing first-lien credit facility to facilitate the purchase from Australia-based Amcor Ltd. - the White Cap closures business in Europe, Southeast Asia and South America.

Moody's said the stable outlook is due to the fact that Moody's anticipates that Silgan will continue to undertake acquisitions in a manner consistent with the current ratings and operate with adjusted total debt to EBITDA in a range of 2.5 to 3.5 times.

Moody's said it expects that Silgan's acquisition expertise and experience will enable it to integrate the White Cap acquisition without disruption to its existing business.

The Ba2 rating on Silgan's first-lien credit facilities reflects their senior position in the capital structure and expected enterprise value coverage in a distressed scenario. The dominance of the first-lien facilities in the capital structure prevents notching the first-lien facilities above the corporate family rating, the agency noted.

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