Silgan gets $900 million committed term loan for planned acquisition

By Devika Patel

Knoxville, Tenn., Jan. 27 – Silgan Holdings Inc. will use a combination of cash on hand and borrowings under its senior secured credit facility, including a $900 million committed delayed draw term loan, for its planned $900 million acquisition of Albea Beauty Holdings SA’s dispensing business.

“The transaction is supported by a fully committed debt financing, and that comes in the form of a $900 million committed delayed draw term loan,” executive vice president and chief financial officer Robert B. Lewis said on the company’s conference call announcing the transaction on Monday.

Leverage is expected to go up to 4x, but management anticipates deleveraging over time.

“On a pro forma basis, the leverage would be approximately 4x [post-closing],” Lewis said

“We also see opportunities to de-lever over time and enhance the growth of the business through the acquisition,” president and chief executive officer Anthony J. Allott said on the call.

The acquisition should not affect the company’s credit ratings.

“We do not expect any anticipated changes in our credit ratings,” Lewis said.

The acquisition is expected to close in the first half of 2020.

Silgan is a Stamford, Conn.-based producer of rigid packaging for consumer goods.

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