Recovery Report: Silgan Holdings Inc.'s Recovery Rating Profile Jun 10
Standard & Poors, June 2010
Abstract
We are updating our recovery analysis on U.S.-based packaging company Silgan Holdings Inc. to reflect the company's proposed senior secured credit facilities. Silgan will use proceeds to refinance its existing senior secured credit facility and pay fees and expenses associated with the proposed refinancing, with remaining proceeds retained as cash-on-hand. Our simulated path to default entails a significant drop in revenues from the loss of key customers while margin compression results from heightened competition and rising cost pressures over an extended period. These factors could cause the company to fully utilize liquidity and subsequently lead to a payment default in 2015. We believe the company would continue to maintain ongoing viability as its products command large market shares and have...
Companies mentioned in this report are: Silgan Holdings Inc.,Silgan Plastics Canada Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
Silgan Holdings Inc.,Silgan Plastics Canada Inc.
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