Silgan Announces Completion of Amendment to Senior Secured Credit Facility
STAMFORD, Connecticut – (COMMERCIAL THREAD) – Silgan Holdings Inc. (Nasdaq: SLGN), a leading provider of durable rigid packaging for consumer products, today announced that it has finalized an amendment to its existing senior secured credit facility that extends maturity dates by more than 3 years, increases the Company’s revolving credit facility from $ 1.2 billion to $ 1.5 billion and provides $ 1.0 billion in new term loans to refinance the outstanding term and revolving loans used to finance the three recent acquisitions made in 2021 and the acquisition of the AlbÃ©a group’s distribution activities in 2020. The amendment also offers the Company additional flexibility with regard to its initiatives strategic.
âWe are pleased to announce an amendment to our senior secured credit facility, taking advantage of favorable credit markets,â said Bob Lewis, Executive Vice President and Chief Financial Officer. “The amendment extends maturities, refinances existing acquisition debt, increases our revolving credit facility and provides additional flexibility, thus leaving us in a good position to pursue our strategic initiatives,” concluded Mr. Lewis.
The amendment extends the maturity date of term loans under the Senior Secured Credit Facility to November 9, 2027, and the maturity date of the revolving loan facility under the Secured Credit Facility senior credit facility until November 9, 2026. The Company may use the $ 1.5 billion revolving credit facility under its senior secured credit facility for working capital and other general purposes of the business, including acquisitions, share buybacks and refinancing of other debts. The Company’s senior secured credit facility also provides it with an additional uncommitted multi-currency loan facility for an additional US $ 1.25 billion, which can be increased in accordance with the senior secured credit facility and can be used to finance acquisitions and for other authorized purposes. The amendment also gives the Company greater flexibility to, among other things, make other acquisitions, incur additional debt and engage in other corporate transactions.
Under the terms of the amendment, term loans and revolving loans maintained at the Eurocurrency rate, the EURIBOR rate or the CDOR rate will initially have a margin of 1.50% and term loans and revolving loans maintained at the base rate. or prime rate loans will initially have a margin of 0.50%. , all in accordance with the Company’s senior secured credit facility prior to the amendment. The margins of term loans and revolving loans are subject to quarterly adjustment based on the Company’s leverage ratio as of April 1, 2022.
The modification of the senior secured credit facility will not affect the Company’s earnings estimate for fiscal 2021.
Silgan is a leading provider of sustainable rigid packaging solutions for consumer products with annual net sales of approximately $ 4.9 billion in 2020. Silgan operates 113 manufacturing plants in North and South America , in Europe and Asia. The Company is one of the world’s leading suppliers of distribution and specialty closures for food, beverage, health care, garden, home, personal care and beauty products. The Company is also a leading supplier of metal containers in North America and Europe for food and general-line products. In addition, the Company is one of the leading suppliers of custom containers for long-life food and personal care products in North America.
Statements included in this press release that are not historical facts are forward-looking statements made in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on management’s expectations and beliefs regarding future events affecting 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 2020 and other filings with the Securities and Exchange Commission. Accordingly, the actual results of operations or the financial condition of the Company could differ materially from those expressed or implied in these forward-looking statements.