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Silgan amends and restates existing credit facility
Mar 27, 2017 (M2 EQUITYBITES via COMTEX) -- (C)1994-2017 M2 COMMUNICATIONS http://www.m2.com

Silgan Holdings Inc (Nasdaq:SLGN) revealed on Saturday that it completed an amendment and restatement of its existing senior secured credit facility.

This extended the maturity dates, provided further borrowing capacity for the company and provided it with greater flexibility regarding its strategic initiatives. The joint lead arrangers and joint book managers for this credit facility is Wells Fargo Securities LLC, Merrill Lynch, Pierce Fenner & Smith Incorporated, Goldman Sachs Bank USA, HSBC Bank USA National Association, Mizuho Bank Ltd and Co?peratieve Rabobank UA New York Branch.

Also, pursuant to the amended and restated facility the company has a multi-currency revolving loan facility of USD1.2bn that will mature on 24 March 2022 and Canadian A term loans of CAD45.5m that provides it with a delayed draw US A term loan of USD800mn, which will mature on 24 March 2023. This US A term loan will be used by it to finance USD800m of the purchase price paid related to the acquisition of its speciality closures and dispensing systems business of WestRock Company (NYSE:WRK), which will close in early April. This replaces an earlier incremental term loan that was to fund the purchase price for such acquisition.

Further, the company may use the above revolving facility for working capital and other general corporate purposes like acquisitions, stock repurchases and refinancing of other debt. The credit facility also provides an incremental uncommitted multi-currency loan facility for another USD1.25bn, which may be increased as provided in the amendment and restatement and be used to fund acquisitions and for other permitted purposes. Therefore, the company has greater flexibility to, among other things, make further acquisitions and incur additional debt.

Finally, under the credit facility the interest rate for USD loans will be either the EUR/USD rate or the base rate plus a margin, the interest rate for EUR loans will be the EUR/USD rate plus a margin and the interest rate for CAD loans will be either the CDOR rate or the Canadian prime rate plus a margin. Initially, for term loans and revolving loans maintained as EUR/USD Rate or CDOR Rate loans, the margin will be 2.00%, while for term loans and revolving loans maintained as base rate or prime rate loans the margin will be 1.00%. Both these margins are subject to adjustment quarterly based upon financial ratios.

Silgan supplies rigid packaging and reported annual net sales of about USD3.6bn in 2016. It operates 87 manufacturing facilities in North and South America, Europe and Asia. It supplies metal containers in North America and Europe and is a worldwide supplier of metal, composite and plastic vacuum closures and plastic containers in North America.


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