Deutsche Bank and Banc of America Securities are launching a $1 billion credit facility for Silgan Holdings, a Stamford, Conn.-based supplier of consumer goods and packaging products. The facility consists of a $450 million revolver, a $325 million term loan "A" and a $225 million term loan "B." Malcolm Miller, v.p. and treasurer, declined comment on the refinancing.
A Securities and Exchange Commission filing states that the company is looking to lower the interest rates based on its strengthening credit status and favorable market conditions. The loan will also provide more covenant flexibility. One investor said the institutional loan is priced at LIBOR plus 1 1/2%. Silgan's current institutional loan is priced 25 basis points higher.