Street Calls of the Week
NORWALK, Conn. - Silgan Holdings Inc. (NYSE:SLGN) announced plans to offer €600 million in senior unsecured notes maturing in 2031, subject to market conditions. The packaging supplier, currently trading near its 52-week low with a market capitalization of approximately $4.9 billion, intends to use the proceeds to repay outstanding revolving loans under its senior secured credit facility and for general corporate purposes. According to InvestingPro data, the company maintains a debt-to-equity ratio of 2.27.
The notes will be guaranteed by Silgan’s U.S. subsidiaries that guarantee obligations under the company’s senior secured credit facility and existing senior secured and unsecured notes, according to a press release statement.
The offering will be limited to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S of the Securities Act. The notes will not be registered under the Securities Act of 1933 and cannot be offered or sold in the United States without registration or an applicable exemption.
Silgan, which reported annual net sales of approximately $5.9 billion in 2024 and maintains an EBITDA of $949 million, operates 124 manufacturing facilities across North and South America, Europe, and Asia. The company supplies dispensing and specialty closures for various consumer products, metal containers for food products, and custom containers for shelf-stable goods. InvestingPro analysis shows the company has maintained dividend payments for 21 consecutive years, with a current dividend yield of 1.74%.
A stabilizing manager may conduct transactions to support the market price of the notes during the stabilization period, though such action is not guaranteed. Any stabilization action must end within 30 calendar days after Silgan receives the proceeds or 60 days after allotment, whichever comes first. For deeper insights into Silgan’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.
The notes will be targeted only to eligible counterparties and professional clients, not retail investors in the European Economic Area or the United Kingdom.
In other recent news, Silgan Holdings reported its Q2 2025 earnings, revealing an adjusted earnings per share (EPS) of $1.01, which fell short of the projected $1.03. However, the company exceeded revenue expectations, reporting $1.54 billion compared to the forecasted $1.53 billion. In addition to its earnings report, Silgan Holdings announced a quarterly dividend of $0.20 per share, payable on September 16, 2025, to shareholders of record as of September 2, 2025. Furthermore, BofA Securities upgraded Silgan Holdings from Neutral to Buy, increasing its price target to $57.00 from $53.00. This upgrade followed a significant drop in the company’s stock due to reduced earnings guidance and challenges such as weak beverage-closure volumes and food can-customer bankruptcy issues. These recent developments provide investors with insights into Silgan Holdings’ financial performance and strategic decisions.
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