Recovery Report: Silgan Holdings Inc.'s Recovery Rating Profile Jul 11
- ID: 2088218
- July 2011
- Standard & Poors
Standard & Poor's Ratings Services has updated its issue-level and recovery ratings on Stamford, Conn.-based consumer goods packaging manufacturer Silgan Holdings Inc. to reflect the increase of its proposed US$ term loan A tranche to $520 million from $400 million (see table 1). The company will use the proceeds of the proposed $1.8 billion senior secured credit facilities to refinance existing senior secured debt, to provide for working capital and general corporate purposes. Our simulated default scenario assumes a default year of 2016, based on a significant decline in revenues due to the loss of key customers and margin compression from heightened competition and rising costs. The company's pro forma debt structure consists of the following facilities: $800 million revolving...
Companies mentioned in this report are: Silgan Holdings Inc.,Silgan Plastics Canada Inc.
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