Published on 11/4/2019 in the Prospect News High Yield Daily.
New Issue: Silgan sells upsized $400 million 4 1/8% 8.2-year notes at par
By Paul A. Harris
Portland, Ore., Nov. 4 – Silgan Holdings, Inc. priced an upsized $400 million issue of senior notes due Feb. 1, 2028 (Ba3/BB-) at par to yield 4 1/8% in a Monday drive-by, according to a syndicate source.
The issue size increased from $300 million.
The yield printed at the tight end of yield talk in the 4¼% area.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were Wells Fargo Securities LLC, Mizuho Securities USA Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and SMBC Nikko Securities America Inc.
The Stamford, Conn.-based producer of rigid packaging for consumer goods plans to use the proceeds to repay revolving loans under its amended and restated senior secured credit facility used to redeem its senior notes due 2022. That redemption took place on Aug. 1, 2019.
| Issuer: | Silgan Holdings Inc.
|
| Amount: | $400 million, increased from $300 million
|
| Maturity: | Feb. 1, 2028
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Securities Inc.
|
| Joint bookrunners: | Wells Fargo Securities LLC, Mizuho Securities USA Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and SMBC Nikko Securities America Inc.
|
| Co-managers: | Rabo Securities USA Inc., TD Securities (USA) LLC, Capital One Securities Inc., BMO Capital Markets, CIBC World Markets Corp., UniCredit, PNC Capital Markets LLC, MUFG and Scotia Capital
|
| Coupon: | 4 1/8%
|
| Price: | Par
|
| Yield: | 4 1/8%
|
| Spread: | 241 bps
|
| First call: | Oct. 1, 2022 at 102.063
|
| Trade date: | Nov. 4
|
| Settlement date: | Nov. 12
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 4¼% area
|
| Marketing: | Quick to market
|
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