Silgan Announces Successful Completion of a New Upsized Senior Secured Credit Facility
STAMFORD, Conn., Jul 07, 2010 (BUSINESS WIRE) --
Copyright Business Wire 2010
Silgan Holdings Inc. (Nasdaq:SLGN), a leading supplier of consumer goods
packaging products, announced today that it has successfully completed a
new upsized senior secured credit facility which refinances its existing
senior secured credit facility and provides greater flexibility with
regard to its strategic initiatives. Deutsche Bank Securities Inc. and
Banc of America Securities LLC were the joint lead arrangers and joint
book runners for the new syndicated credit facility.
"We are pleased with the execution of this transaction," said Bob Lewis,
Executive Vice President and Chief Financial Officer. "We continue to
enjoy strong access to the credit markets, as evidenced by our ability
to upsize this facility to $1.4 billion," continued Mr. Lewis. "The
completion of this new credit facility leaves us well positioned to
pursue various strategic alternatives to deploy capital," concluded Mr.
Lewis.
The new credit facility provides the Company with US $400 million of US
A term loans, EUR125 million of Euro A term loans, Cdn $81 million of
Canadian A term loans and a US $800 million multicurrency revolving loan
facility. In addition, the new credit facility provides greater
flexibility to the Company to, among other things, make acquisitions,
pay dividends, repurchase stock and incur additional debt. Although not
obligated, the Company could use funds from the new credit facility to
redeem its 63/4% Senior Subordinated Notes due 2013.
The term loans provided under the new credit facility refinanced the
term loans under the prior credit facility, and the excess proceeds from
the new term loans may be used by the Company for general corporate
purposes including acquisitions, stock repurchases and refinancing of
other debt. The new term loans mature on July 7, 2016. The Company may
use revolving loans under the new credit facility for working capital
and other general corporate purposes including acquisitions, stock
repurchases and refinancing of other debt. The revolving loan facility
matures on July 7, 2015. The new credit facility also provides the
Company with an incremental uncommitted multicurrency loan facility for
up to an additional US $450 million, which may be used to finance
acquisitions and for other permitted purposes.
Under the new credit facility, the interest rate for US dollar loans
will be either LIBOR or the base rate under the new credit facility plus
a margin, the interest rate for Euro loans will be the Euribor rate
under the new credit facility plus a margin and the interest rate for
Canadian dollar loans will be either the Bankers' Acceptance discount
rate or the Canadian prime rate under the new credit facility plus a
margin. Initially, for term loans and revolving loans maintained as
LIBOR, Euribor or Bankers' Acceptance loans the margin will be 2.25% and
for term loans and revolving loans maintained as base rate or prime rate
loans the margin will be 1.25%. The margins for term loans and revolving
loans are subject to adjustment quarterly based upon financial ratios.
As a result of the incremental borrowings and higher interest rates
under the new credit facility, the Company is revising its current
estimate of full year 2010 adjusted net income per diluted share down by
$0.07 to a range of $2.10 to $2.20. In addition, the Company expects to
record a charge of approximately $0.04 per diluted share for the loss on
early extinguishment of debt in connection with this refinancing.
Silgan Holdings is a leading manufacturer of consumer goods packaging
products with annual net sales of approximately $3.1 billion in 2009.
Silgan operates 66 manufacturing facilities in North and South America,
Europe and Asia. In North America, the Company is the largest supplier
of metal containers for food products and a leading supplier of plastic
containers for personal care products. In addition, Silgan is a leading
worldwide supplier of metal, composite and plastic vacuum closures for
food and beverage products.
Statements included in this press release which are not historical facts
are forward looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995 and
the Securities Exchange Act of 1934. Such forward looking statements are
made based upon management's expectations and beliefs concerning future
events impacting the Company and therefore involve a number of
uncertainties and risks, including, but not limited to, those described
in the Company's Annual Report on Form 10-K for 2009 and other filings
with the Securities and Exchange Commission. Therefore, the actual
results of operations or financial condition of the Company could differ
materially from those expressed or implied in such forward-looking
statements.
SOURCE: Silgan Holdings Inc.
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