Silgan Announces Pricing of New Senior Notes Offerings
February 08 2017 - 3:52PM
Business Wire
Silgan Holdings Inc. (Nasdaq:SLGN), a leading supplier of rigid
packaging for consumer goods products, announced today that it
priced its previously announced private offerings of senior
unsecured notes. Silgan announced that it entered into an agreement
to sell $300 million aggregate principal amount of 4 ¾ % Senior
Notes due 2025 and €650 million aggregate principal amount of 3 ¼ %
Senior Notes due 2025. The offering for the Euro notes was upsized
by €200 million, from a previously announced offering size of €450
million to €650 million. The new U.S. Dollar notes will mature on
March 15, 2025, and the new Euro notes will mature on March 15,
2025. Interest on the new U.S. Dollar and Euro notes will accrue
and be payable semi-annually on each March 15th and September 15th,
commencing September 15, 2017.
Silgan intends to use the net proceeds from the U.S. Dollar
notes offering to prepay a portion of its outstanding U.S. Dollar
term loans and repay a portion of its outstanding revolving loans
under its senior secured credit facility. Silgan intends to use the
net proceeds from the Euro notes offering to prepay all outstanding
Euro term loans and repay a portion of its outstanding revolving
loans under its senior secured credit facility, to repay certain
foreign bank revolving and term loans of certain of its non-U.S.
subsidiaries and, with respect to the additional €200 million from
the Euro notes offering, to redeem, on or after April 1, 2017, an
equivalent US dollar amount, including the applicable redemption
premium therefor, of its outstanding 5% Senior Notes due 2020. As a
result of such partial redemption of Silgan’s 5% Senior Notes due
2020, Silgan expects to incur a loss on early extinguishment of
debt of approximately $0.05 per diluted share, with the final
amount of such loss on early extinguishment of debt to be
determined upon completion of such partial redemption.
The notes being sold by Silgan will not initially be registered
under the Securities Act of 1933, as amended, or the Securities
Act, or under any state securities law and may not be offered or
sold in the United States absent registration or an applicable
exemption from registration under the Securities Act and applicable
state securities laws. The notes are being offered only to
qualified institutional buyers under Rule 144A and outside the
United States in compliance with Regulation S under the Securities
Act. This press release does not constitute an offer to sell any
security and shall not constitute an offer, solicitation or sale in
any jurisdiction in which such offering would be unlawful.
Silgan is a leading supplier of rigid packaging for consumer
goods products with annual net sales of approximately $3.6 billion
in 2016. Silgan operates 87 manufacturing facilities in North and
South America, Europe and Asia. Silgan is a leading supplier of
metal containers in North America and Europe and a leading
worldwide supplier of metal, composite and plastic closures for
food and beverage products. In addition, Silgan is a leading
supplier of plastic containers for shelf-stable food and personal
care products in North America.
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, as
amended. 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 2015 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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version on businesswire.com: http://www.businesswire.com/news/home/20170208006199/en/
Silgan Holdings Inc.Robert B. Lewis,
203-406-3160
Silgan (NASDAQ:SLGN)
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