EXHIBIT 99.1
News
For Immediate Release SILGAN HOLDINGS INC.
4 Landmark Square
Suite 400
Stamford, CT 06901
Telephone: (203) 975-7110
Fax: (203) 975-7902
Contact:
Robert B. Lewis
(203) 406-3160
SILGAN HOLDINGS ANNOUNCES COMPLETION OF A NEW
$1.0 BILLION SENIOR SECURED CREDIT FACILITY
STAMFORD, CT, July 5, 2005 -- Silgan Holdings Inc. (Nasdaq:SLGN), a leading
supplier of consumer goods packaging products, announced today that it has
successfully completed a new $1.0 billion senior secured credit facility taking
advantage of the favorable credit markets to refinance its existing senior
secured credit facility. 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.
The new credit facility provides the Company with $425 million of A term loans,
$125 million of B term loans and a $450 million revolving loan facility. Under
the new credit facility, the Company may use revolving loans for working capital
and other general purposes including acquisitions. The A term loans and
revolving loan facility mature on June 30, 2011, and the B term loans mature on
June 30, 2012. The new credit facility also provides the Company with an
incremental uncommitted term loan facility of up to an additional $350 million,
which may be
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SILGAN HOLDINGS
July 5, 2005
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used to finance acquisitions and for other permitted purposes. In addition, the
new credit facility provides increased flexibility to, among other things, make
acquisitions, pay dividends, repurchase shares and incur additional debt.
Under the new credit facility, the interest rate for all loans will either be
LIBOR plus a margin or the prime lending rate of Deutsche Bank plus a margin.
Initially, for the A term loans and revolving loans the margin will be 1.125%
for LIBOR loans and 0.125% for prime rate loans. The margins for A term loans
and revolving loans are subject to adjustment quarterly based upon financial
ratios. For the B term loans, the margin for LIBOR loans is fixed at 1.25% and
the margin for prime rate loans is fixed at 0.25%. Prior to the refinancing, the
interest rate for A term loans and revolving loans under the Company's prior
credit facility was LIBOR plus a margin of 1.50% or the prime lending rate of
Deutsche Bank plus a margin of 0.50%, and for B term loans an additional 0.25%,
or LIBOR plus 1.75%.
Upon closing this refinancing, the Company recorded a non-cash, pre-tax charge
of $11.0 million for a loss on early extinguishment of debt to write-off the
unamortized debt issuance costs of the prior credit facility. The Company's
earnings estimates for the second quarter and full year 2005 previously provided
did not include the impact of this charge.
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Silgan Holdings is a leading North American manufacturer of consumer goods
packaging products with annual net sales of $2.4 billion in 2004. Silgan
operates 60 manufacturing facilities in the U.S. and Canada. 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 and of metal
and plastic closures for food and beverage products.
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SILGAN HOLDINGS
July 5, 2005
Page 3
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 2004
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.
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