Silgan to redeem 9% notes with bond-sale proceeds, additional borrowings

New York, Oct. 30 - Silgan Holdings Inc. (B1/B+) said it plans to redeem its outstanding 9% senior subordinated debentures due 2009 with proceeds from a planned offering of $200 million of 10-year senior subordinated notes along with other funds.

Silgan, a Stamford, Conn.-based manufacturer of consumer goods packaging products, said it plans to use the net proceeds of the bond offering to redeem a portion of its outstanding 9% debentures at a price of 103.375% of their principal amount.

The company also indicated that it is seeking to amend its senior secured credit facility before the end of the year to allow additional term borrowings, and to allow for the use of these borrowings to further redeem outstanding 9% debentures.

Silgan said that it would intend to use the proceeds of additional term borrowings and other funds to fully redeem the remaining outstanding 9% debentures at a redemption price of 103.375% of their principal amount.

Silgan gave no timetable for its anticipated redemptions of the 9% debentures. It issued $300 million of the debentures in June 1997 and an additional $200 million in April 2002.

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