SILGAN HOLDINGS
November 9, 2021
Page 2
The amendment extends the maturity date for term loans under the senior secured credit facility until November 9, 2027 and the maturity date for the revolving loan facility under the senior secured credit facility until November 9, 2026. The Company may use the $1.5 billion revolving loan facility under its senior secured credit facility for working capital and other general corporate purposes, including acquisitions, stock repurchases and refinancings of other debt. The Company’s senior secured credit facility also provides it with an incremental uncommitted multicurrency loan facility for an additional US $1.25 billion, which may be increased as provided in the senior secured credit facility and may be used to finance acquisitions and for other permitted purposes. The amendment also provides the Company with greater flexibility to, among other things, make further acquisitions, incur additional debt and engage in other corporate transactions.
Under the amendment, term loans and revolving loans maintained as Eurocurrency Rate, EURIBOR Rate or CDOR Rate loans will initially have a margin of 1.50% and term loans and revolving loans maintained as base rate or prime rate loans will initially have a margin of 0.50%, all consistent with the Company’s senior secured credit facility prior to the amendment. The margins for term loans and revolving loans are subject to adjustment quarterly based upon the Company’s leverage ratio beginning on April 1, 2022.
The amendment to the senior secured credit facility will not have any impact on the Company’s full year 2021 earnings estimate.
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Silgan is a leading supplier of sustainable rigid packaging solutions for consumer goods products with annual net sales of approximately $4.9 billion in 2020. Silgan operates 113 manufacturing facilities in North and South America, Europe and Asia. The Company is a leading worldwide supplier of dispensing 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 a leading supplier of custom containers for shelf-stable food and personal care products in North America.
