Silgan Holdings amended and restated its existing senior secured credit facility, extending the maturity dates, providing additional borrowing capacity for the company and affording the company greater flexibility with regard to its strategic initiatives.

Wells Fargo Securities, Merrill Lynch, Goldman Sachs Bank USA, HSBC Bank USA, Mizuho Bank and Rabobank NY Branch, were the joint lead arrangers and joint book managers for the amended and restated credit facility.

“We are pleased to announce the successful completion of our amended and restated senior secured credit facility,” said Bob Lewis, executive vice president and chief financial officer. “We continue to enjoy strong access to the credit markets, as evidenced by this transaction and our recent U.S. Dollar and Euro senior notes issuances completed in February 2017. Our amended and restated credit facility extends maturities, provides additional borrowing capacity and provides greater flexibility, leaving us well positioned to continue to pursue various strategic alternatives.”

The amended facility provides the company with a $1.2 billion multi-currency revolving loan facility and C$45.5 million ($34.2 million) of Canadian A term loans. Additionally, the amended and restated credit facility provides the company with a delayed draw U.S. A term loan of $800 million. This delayed draw U.S. A term loan will be used by the company to fund $800 million of the purchase price to be paid by the company in connection with its previously announced acquisition of the specialty closures and dispensing systems business of WestRock, which is now expected to close in early April subject to the satisfaction of applicable conditions. This delayed draw U.S. A term loan replaces the U.S. $800 million incremental term loan the company had intended to borrow to fund the purchase price for such acquisition.

The term loans provided under the amended and restated credit facility mature on March 24, 2023. The company may use revolving loans under the amended and restated 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 March 24, 2022. The amended facility also provides the company with an incremental uncommitted multi-currency loan facility for an additional $1.25 billion, which may be increased as provided in the amended and restated credit facility and may be used to finance acquisitions and for other permitted purposes. In addition, the amended and restated credit facility provides the Company with greater flexibility to, among other things, make further acquisitions and incur additional debt.

Under the amended and restated credit facility, the interest rate for U.S. dollar loans will be either the Eurodollar Rate or the base rate plus a margin, the interest rate for Euro loans will be the Eurodollar Rate plus a margin and the interest rate for Canadian dollar loans will be either the CDOR Rate or the Canadian prime rate plus a margin.

Initially, for term loans and revolving loans maintained as Eurodollar Rate or CDOR Rate loans the margin will be 2.00% and for term loans and revolving loans maintained as base rate or prime rate loans the margin will be 1.00%. The margins for term loans and revolving loans are subject to adjustment quarterly based upon financial ratios.

Silgan is a 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.