Silgan Holdings announced it completed a new senior-secured credit facility to refinance its existing senior-secured credit facility and provide greater flexibility. Wells Fargo Securities, Merrill Lynch, Citigroup Global Markets and Goldman Sachs Bank were the joint lead arrangers and joint book managers for the new syndicated credit facility.

“We are pleased to announce the successful syndication of our new senior secured credit facility,” said Bob Lewis, EVP and CFO. “Our new credit facility provides more favorable pricing as compared to our existing credit facility, as well as significant additional borrowing capacity, longer maturities and greater flexibility, leaving us well positioned to continue to pursue various strategic alternatives.”

The new credit facility provides the company with $365 million of U.S. term loans, €220 million term loans, $70 million of Canadian term loans and a $1.0 billion multicurrency revolving loan facility. In addition, the new credit facility provides greater flexibility to the company to, among other things, make acquisitions, pay dividends, repurchase stock and incur additional debt.

The term loans provided under the new credit facility refinanced the term loans under the prior credit facility, and the new term loans mature on January 14, 2020. The company may use revolving loans under the new 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 January 14, 2019. The new credit facility also provides the company with an incremental uncommitted multicurrency loan facility for an additional US $1.25 billion, which may be increased as provided in the new credit facility and may be used to finance acquisitions and for other permitted purposes.

Under the new 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 1.50% and for term loans and revolving loans maintained as base rate or prime rate loans the margin will be 0.50%. The margins for term loans and revolving loans are subject to adjustment quarterly based upon financial ratios.

Silgan Holdings is a supplier of rigid packaging for shelf-stable food and other consumer goods operating 88 manufacturing facilities in North and South America, Europe and Asia.