Company Quick10K Filing
Silgan Holdings
Price29.77 EPS2
Shares112 P/E17
MCap3,321 P/FCF-1,377
Net Debt2,534 EBIT301
TEV5,855 TEV/EBIT19
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-08
10-K 2019-12-31 Filed 2020-03-02
10-Q 2019-09-30 Filed 2019-11-08
10-Q 2019-06-30 Filed 2019-08-08
10-Q 2019-03-31 Filed 2019-05-08
10-K 2018-12-31 Filed 2019-02-28
10-Q 2018-09-30 Filed 2018-11-08
10-Q 2018-06-30 Filed 2018-08-08
10-Q 2018-03-31 Filed 2018-05-04
10-K 2017-12-31 Filed 2018-03-01
10-Q 2017-09-30 Filed 2017-11-09
10-Q 2017-06-30 Filed 2017-08-09
10-Q 2017-03-31 Filed 2017-05-05
10-K 2016-12-31 Filed 2017-03-01
10-Q 2016-09-30 Filed 2016-11-08
10-Q 2016-06-30 Filed 2016-08-03
10-Q 2016-03-31 Filed 2016-05-06
10-K 2015-12-31 Filed 2016-02-25
10-Q 2015-09-30 Filed 2015-11-06
10-Q 2015-06-30 Filed 2015-08-07
10-Q 2015-03-31 Filed 2015-05-08
10-K 2014-12-31 Filed 2015-02-27
10-Q 2014-09-30 Filed 2014-11-07
10-Q 2014-06-30 Filed 2014-08-08
10-Q 2014-03-31 Filed 2014-05-09
10-K 2013-12-31 Filed 2014-02-28
10-Q 2013-09-30 Filed 2013-11-08
10-Q 2013-06-30 Filed 2013-08-08
10-Q 2013-03-31 Filed 2013-05-10
10-K 2012-12-31 Filed 2013-02-28
10-Q 2012-09-30 Filed 2012-11-09
10-Q 2012-06-30 Filed 2012-08-09
10-Q 2012-03-31 Filed 2012-05-10
10-K 2011-12-31 Filed 2012-02-29
10-Q 2011-09-30 Filed 2011-11-09
10-Q 2011-06-30 Filed 2011-08-09
10-Q 2011-03-31 Filed 2011-05-10
10-K 2010-12-31 Filed 2011-02-28
10-Q 2010-09-30 Filed 2010-11-05
10-Q 2010-08-02 Filed 2010-08-09
10-Q 2010-03-31 Filed 2010-05-10
10-K 2009-12-31 Filed 2010-03-01
8-K 2020-07-22 Earnings, Exhibits
8-K 2020-07-15 Regulation FD, Exhibits
8-K 2020-06-08
8-K 2020-06-01
8-K 2020-05-06
8-K 2020-04-22
8-K 2020-04-21
8-K 2020-04-17
8-K 2020-02-27
8-K 2020-02-26
8-K 2020-02-19
8-K 2020-02-19
8-K 2020-02-04
8-K 2020-01-28
8-K 2020-01-27
8-K 2020-01-27
8-K 2019-11-12
8-K 2019-11-06
8-K 2019-11-04
8-K 2019-11-04
8-K 2019-10-23
8-K 2019-10-01
8-K 2019-08-07
8-K 2019-07-24
8-K 2019-07-01
8-K 2019-07-01
8-K 2019-06-12
8-K 2019-06-11
8-K 2019-06-04
8-K 2019-05-08
8-K 2019-05-07
8-K 2019-04-24
8-K 2019-04-15
8-K 2019-04-01
8-K 2019-02-27
8-K 2019-01-29
8-K 2018-11-08
8-K 2018-10-24
8-K 2018-08-07
8-K 2018-08-06
8-K 2018-07-25
8-K 2018-06-11
8-K 2018-05-30
8-K 2018-05-03
8-K 2018-04-25
8-K 2018-03-16
8-K 2018-02-28
8-K 2018-01-30
8-K 2018-01-24

SLGN 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Note 1. Significant Accounting Policies
Note 2. Revenue
Note 3. Acquisition
Note 4. Rationalization Charges
Note 5. Accumulated Other Comprehensive Loss
Note 6. Inventories
Note 7. Long - Term Debt
Note 8. Financial Instruments
Note 9. Commitments and Contingencies
Note 10. Retirement Benefits
Note 11. Income Taxes
Note 12. Treasury Stock
Note 13. Stock - Based Compensation
Note 14. Business Segment Information
Note 15. Subsequent Events
Item 2.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-31.1 exhibit3113-31x20.htm
EX-31.2 exhibit3123-31x20.htm
EX-32.1 exhibit3213-31x20.htm
EX-32.2 exhibit3223-31x20.htm

Silgan Holdings Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
10.08.06.04.02.00.02012201420172020
Assets, Equity
1.41.10.80.60.30.02012201420172020
Rev, G Profit, Net Income
0.90.50.1-0.3-0.7-1.12012201420172020
Ops, Inv, Fin

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________________ to ________________

Commission file number  000-22117
SILGAN HOLDINGS INC.
(Exact name of Registrant as specified in its charter)
Delaware06-1269834
(State or other jurisdiction(I.R.S. Employer
of incorporation or organization)Identification No.)
  
4 Landmark Square 
Stamford,Connecticut06901
(Address of principal executive offices)(Zip Code)
(203) 975-7110
(Registrant's telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareSLGNNasdaq Global Select Market

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes    No

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).  Yes    No

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer

           Accelerated filer

Non-accelerated filer

           Smaller reporting company
           Emerging growth company

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes    No

As of April 30, 2020, the number of shares outstanding of the Registrant’s common stock was 110,871,203.
-1-



SILGAN HOLDINGS INC.
 
TABLE OF CONTENTS
  
 Page No.
  
  
  
  
 
  
  
  
  
  
 
  
 
 
  

-2-



Part I. Financial Information
Item 1. Financial Statements

SILGAN HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

March 31, 2020March 31, 2019Dec. 31, 2019
 (unaudited)(unaudited) 
Assets   
Current assets:   
Cash and cash equivalents$614,846  $141,400  $203,824  
Trade accounts receivable, net600,698  596,601  504,986  
Inventories697,808  686,213  633,005  
Prepaid expenses and other current assets68,993  70,622  64,993  
Total current assets1,982,345  1,494,836  1,406,808  
Property, plant and equipment, net1,553,867  1,511,718  1,570,331  
Goodwill1,148,991  1,141,202  1,142,223  
Other intangible assets, net356,542  374,809  354,615  
Other assets, net486,793  402,008  457,082  
 $5,528,538  $4,924,573  $4,931,059  
Liabilities and Stockholders’ Equity   
Current liabilities:   
Revolving loans and current portion of long-term debt$854,653  $578,001  $29,813  
Trade accounts payable504,481  536,909  727,053  
Accrued payroll and related costs66,772  61,874  66,866  
Accrued liabilities217,928  122,001  194,797  
Total current liabilities1,643,834  1,298,785  1,018,529  
Long-term debt2,174,571  2,113,575  2,214,608  
Deferred income taxes264,047  273,345  254,836  
Other liabilities425,511  338,661  419,764  
Stockholders’ equity:   
Common stock1,751  1,751  1,751  
Paid-in capital292,283  276,435  289,422  
Retained earnings2,184,691  2,031,487  2,141,302  
Accumulated other comprehensive loss(297,697) (272,431) (259,742) 
Treasury stock(1,160,453) (1,137,035) (1,149,411) 
Total stockholders’ equity1,020,575  900,207  1,023,322  
 $5,528,538  $4,924,573  $4,931,059  

See accompanying notes.
-3-


SILGAN HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the three months ended March 31, 2020 and 2019
(Dollars and shares in thousands, except per share amounts)
(Unaudited)


 20202019
   
Net sales$1,030,384  $1,027,131  
Cost of goods sold845,286  861,134  
Gross profit185,098  165,997  
Selling, general and administrative expenses89,863  77,662  
Rationalization charges2,799  6,083  
Other pension and postretirement income(9,705) (4,490) 
Income before interest and income taxes102,141  86,742  
Interest and other debt expense before loss on
early extinguishment of debt
23,489  27,103  
Loss on early extinguishment of debt
1,481    
Interest and other debt expense24,970  27,103  
Income before income taxes77,171  59,639  
Provision for income taxes19,571  12,897  
Net income$57,600  $46,742  
Earnings per share:
Basic net income per share$0.52  $0.42  
Diluted net income per share$0.52  $0.42  
Weighted average number of shares:
Basic110,862  110,709  
Effect of dilutive securities570  883  
Diluted111,432  111,592  
See accompanying notes.

-4-


 SILGAN HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three months ended March 31, 2020 and 2019
(Dollars in thousands)
(Unaudited)


 20202019
Net income$57,600  $46,742  
  Other comprehensive income (loss), net of tax:
  Changes in net prior service credit and actuarial losses939  2,506  
  Change in fair value of derivatives(2,455) (887) 
  Foreign currency translation(36,439) (5,242) 
Other comprehensive loss (37,955) (3,623) 
Comprehensive income $19,645  $43,119  
 
See accompanying notes.
-5-


 SILGAN HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended March 31, 2020 and 2019
(Dollars in thousands)
(Unaudited)



 20202019
Cash flows provided by (used in) operating activities:  
Net income$57,600  $46,742  
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
  
Depreciation and amortization51,090  51,232  
Rationalization charges2,799  6,083  
Stock compensation expense4,483  3,909  
Loss on early extinguishment of debt1,481    
Other changes that provided (used) cash, net of effects from acquisition:  
Trade accounts receivable, net(103,975) (88,594) 
Inventories(68,965) (53,793) 
Trade accounts payable(126,728) (81,242) 
Accrued liabilities20,443  (51,321) 
Other, net(6,364) 11,198  
Net cash used in operating activities(168,136) (155,786) 
Cash flows provided by (used in) investing activities:  
Purchase of business, net of cash acquired(39,828)   
Capital expenditures(65,147) (61,746) 
Other, net534  20  
Net cash used in investing activities(104,441) (61,726) 
Cash flows provided by (used in) financing activities:  
Borrowings under revolving loans877,114  614,103  
Repayments under revolving loans(48,970) (205,856) 
Proceeds from issuance of long-term debt739,661    
Repayments of long-term debt(766,170) (8,161) 
Changes in outstanding checks - principally vendors(79,006) (83,670) 
Dividends paid on common stock(13,771) (14,161) 
Debt issuance costs(7,544)   
Repurchase of common stock under stock plan(12,664) (15,046) 
Net cash provided by financing activities688,650  287,209  
Effect of exchange rate changes on cash and cash equivalents(5,051) (1,116) 
Cash and cash equivalents:  
Net increase 411,022  68,581  
Balance at beginning of year203,824  72,819  
Balance at end of period$614,846  $141,400  
Interest paid, net$23,518  $39,969  
Income taxes paid, net22,056  16,933  

See accompanying notes.
-6-


SILGAN HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
For the three months ended March 31, 2020 and 2019
(Dollars and shares in thousands, except per share amounts)
(Unaudited)
 


20202019
Common stock - shares outstanding
Balance at beginning of period
110,780  110,430  
Net issuance of treasury stock for vested restricted stock units
313  698  
Repurchases of common stock
(259)   
Balance at end of period
110,834  111,128  
Common stock - par value
Balance at beginning and end of period
$1,751  $1,751  
Paid-in capital
Balance at beginning of period
289,422  276,062  
Stock compensation expense
4,483  3,909  
Net issuance of treasury stock for vested restricted stock units
(1,622) (3,536) 
Balance at end of period
292,283  276,435  
Retained earnings
Balance at beginning of period
2,141,302  1,997,785  
Net income
57,600  46,742  
Dividends declared on common stock
(13,546) (12,447) 
Adoption of accounting standards updates related to credit losses in 2020 and leases in 2019
(665) (593) 
Balance at end of period
2,184,691  2,031,487  
Accumulated other comprehensive loss
Balance at beginning of period
(259,742) (268,808) 
Other comprehensive loss
(37,955) (3,623) 
Balance at end of period
(297,697) (272,431) 
Treasury stock
Balance at beginning of period
(1,149,411) (1,125,525) 
Net issuance of treasury stock for vested restricted stock units
(4,108) (11,510) 
Repurchases of common stock
(6,934)   
Balance at end of period
(1,160,453) (1,137,035) 
Total stockholders' equity$1,020,575  $900,207  
Dividends declared on common stock per share$0.12  $0.11  

See accompanying notes.
-7-


SILGAN HOLDINGS INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Information at March 31, 2020 and 2019 and for the
three months then ended is unaudited)

Note 1.               Significant Accounting Policies

Basis of Presentation. The accompanying unaudited condensed consolidated financial statements of Silgan Holdings Inc., or Silgan, have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.  In the opinion of management, the accompanying financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation.  The results of operations for any interim period are not necessarily indicative of the results of operations for the full year.

The Condensed Consolidated Balance Sheet at December 31, 2019 has been derived from our audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements.

You should read the accompanying condensed consolidated financial statements in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019.

Recently Adopted Accounting Pronouncements. In June 2016, the Financial Accounting Standards Board, or FASB, issued an accounting standards update, or ASU, that amends the guidance on the accounting for credit losses on financial instruments. This new standard introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments. The new approach to estimating credit losses (referred to as the current expected credit losses model) applies to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables. We adopted this new standard on January 1, 2020 using the transition method, which allowed us to recognize the effects of applying this standard as a cumulative effect to retained earnings as of January 1, 2020. As a result of the adoption of this standard, we reduced retained earnings by $0.7 million. The adoption of this standard did not have a material impact on our financial position, results of operations or cash flows.

Note 2.               Revenue

The following tables present our revenues disaggregated by reportable business segment and geography as they best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Revenues by business segment for the three months ended March 31 were as follows:
20202019
(Dollars in thousands)
Metal containers$508,519  $507,062  
Closures357,151  356,199  
Plastic containers164,714  163,870  
$1,030,384  $1,027,131  

Revenues by geography for the three months ended March 31 were as follows:
20202019
(Dollars in thousands)
North America$822,405  $810,741  
Europe and other207,979  216,390  
$1,030,384  $1,027,131  



-8-


SILGAN HOLDINGS INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Information at March 31, 2020 and 2019 and for the
three months then ended is unaudited)
Our contracts generally include standard commercial payment terms generally acceptable in each region. We do not provide financing with extended payment terms beyond generally standard commercial payment terms for the applicable industry. We have no significant obligations for refunds, warranties or similar obligations. Trade accounts receivable, net are shown separately on our Condensed Consolidated Balance Sheet. Contract assets are the result of the timing of revenue recognition, billings and cash collections. Our contract assets primarily consist of unbilled accounts receivable related to over time revenue recognition and were $68.9 million, $75.3 million, and $71.1 million as of March 31, 2020 and 2019 and December 31, 2019, respectively. Unbilled receivables are included in trade accounts receivable, net on our Condensed Consolidated Balance Sheet.


Note 3.               Acquisition

On February 4, 2020 we acquired Cobra Plastics, Inc., or Cobra Plastics, a manufacturer and seller of injection molded plastic closures for a wide variety of consumer products, with a particular focus on the aerosol overcap market. The purchase price for this acquisition of $39.8 million, net of cash acquired, was primarily funded with revolving loan borrowings under our amended and restated senior secured credit facility, or the Credit Agreement. For this acquisition, we applied the acquisition method of accounting and recognized assets acquired and liabilities assumed at fair value as of the acquisition date, and we recognized goodwill of $18.4 million and a customer relationship intangible asset of $11.5 million. Cobra Plastics' results of operations were included in our closures business since the acquisition date and were not significant since such date.

Note 4.               Rationalization Charges

We continually evaluate cost reduction opportunities across each of our businesses, including rationalizations of our existing facilities through plant closings and downsizings. We use a disciplined approach to identify opportunities that generate attractive cash returns. Rationalization charges by business segment for the three months ended March 31 were as follows:
20202019
 (Dollars in thousands)
Metal containers$1,963  $222  
Closures742  5,660  
Plastic containers94  201  
 $2,799  $6,083  

Activity in reserves for our rationalization plans were as follows:
Employee
Severance
and Benefits
Plant
Exit
Costs
Non-Cash
Asset
Write-Down
Total
 (Dollars in thousands)
Balance at December 31, 2019$42,815  $898  $  $43,713  
Charged to expense1,362  1,242  195  2,799  
Utilized and currency translation(2,122) (1,331) (195) (3,648) 
Balance at March 31, 2020$42,055  $809  $  $42,864  

Rationalization reserves as of March 31, 2020 were recorded in our Condensed Consolidated Balance Sheets as accrued liabilities of $4.7 million and other liabilities of $38.2 million. Exclusive of the footprint optimization plan for our metal container business and our resulting withdrawal from the Central States, Southeast and Southwest Areas Pension Plan, or the Central States Pension Plan, announced in 2019, remaining expenses for our rationalization plans of $1.9 million are expected primarily through 2020 and remaining cash expenditures for our rationalization plans of $3.6 million are expected through 2023. Remaining expenses for the accretion of interest for the withdrawal liability related to the Central States Pension Plan are expected to average approximately $1.1 million per year and be recognized annually for the next twenty years, and remaining cash expenditures for the withdrawal liability related to the Central States Pension Plan are expected to be approximately $3.1 million annually for the next twenty years, beginning in 2020.
-9-


SILGAN HOLDINGS INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Information at March 31, 2020 and 2019 and for the
three months then ended is unaudited)


Note 5.               Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss is reported in our Condensed Consolidated Statements of Stockholders’ Equity.  Amounts included in accumulated other comprehensive loss, net of tax, were as follows:
 
Unrecognized Net
Defined Benefit
Plan Costs
Change in Fair
Value of
Derivatives
Foreign
Currency
Translation
Total
 (Dollars in thousands)
Balance at December 31, 2019$(139,102) $(3,182) $(117,458) $(259,742) 
Other comprehensive loss before reclassifications
(872) (2,844) (36,439) (40,155) 
Amounts reclassified from accumulated other
    comprehensive loss
1,811  389    2,200  
 Other comprehensive loss939  (2,455) (36,439) (37,955) 
Balance at March 31, 2020$(138,163) $(5,637) $(153,897) $(297,697) 
 
The amounts reclassified to earnings from the unrecognized net defined benefit plan costs component of accumulated other comprehensive loss for the three months ended March 31, 2020, were net (losses) of $(2.4) million, excluding an income tax benefit of $0.6 million. These net (losses) consisted of amortization of net actuarial (losses) of $(2.8) million and amortization of net prior service credit of $0.4 million, respectively. Amortization of net actuarial losses and net prior service credit was recorded in other pension and postretirement income in our Condensed Consolidated Statements of Income. See Note 10 for further information.

The amounts reclassified to earnings from the change in fair value of derivatives component of accumulated other comprehensive loss for the three months ended March 31, 2020 were not significant.

Other comprehensive loss before reclassifications related to foreign currency translation for the three months ended March 31, 2020, consisted of (i) foreign currency (losses) related to translation of quarter end financial statements of foreign subsidiaries utilizing a functional currency other than the U.S. dollar of $(32.9) million, (ii) foreign currency (losses) related to intra-entity foreign currency transactions that are of a long-term investment nature of $(3.0) million, and (iii) foreign currency (losses) related to our net investment hedges of $(0.7) million, excluding an income tax benefit of $0.2 million. See Note 8 for further discussion.


-10-


SILGAN HOLDINGS INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Information at March 31, 2020 and 2019 and for the
three months then ended is unaudited)

Note 6.               Inventories

Inventories consisted of the following: 
March 31, 2020March 31, 2019Dec. 31, 2019
 (Dollars in thousands)
Raw materials$261,058  $244,859  $286,953  
Work-in-process148,034  135,685  134,417  
Finished goods432,085  418,702  355,337  
Other13,126  12,850  12,793  
 854,303  812,096  789,500  
Adjustment to value inventory
at cost on the LIFO method
(156,495) (125,883) (156,495) 
 $697,808  $686,213  $633,005  


Note 7.               Long-Term Debt

Long-term debt consisted of the following:
 
March 31, 2020March 31, 2019Dec. 31, 2019
 (Dollars in thousands)
Bank debt   
Bank revolving loans$827,000  $506,000  $  
U.S. term loans  800,000  760,000  
Canadian term loans  15,825  4,703  
Other foreign bank revolving and term loans29,239  30,906  31,127  
Total bank debt856,239  1,352,731  795,830  
5½% Senior Notes  300,000    
4¾% Senior Notes
300,000  300,000  300,000  
3¼% Senior Notes
713,490  729,170  729,755  
4⅛% Senior Notes600,000    400,000  
2¼% Senior Notes548,839  —  —  
Finance leases32,582  22,167  33,288  
Total debt - principal3,051,150  2,704,068  2,258,873  
Less unamortized debt issuance costs and debt discount21,926  12,492  14,452  
Total debt3,029,224  2,691,576  2,244,421  
Less current portion854,653  578,001  29,813  
 $2,174,571  $2,113,575  $2,214,608  

At March 31, 2020, the current portion of long-term debt consisted of $827.0 million of bank revolving loans under the Credit Agreement, $26.0 million of other foreign bank revolving and term loans and $1.7 million of finance leases.

On February 26, 2020, we issued (i) an additional $200 million aggregate principal amount of our 4⅛% Senior Notes due 2028, or the 4⅛% Notes, at 99.5 percent of their principal amount, plus accrued and unpaid interest from November 12, 2019, and €500 million aggregate principal amount of our 2¼% Senior Notes due 2028, or the 2¼% Notes, at 100 percent of their principal amount. We used the net proceeds from these issuances and revolving loan borrowings under the Credit Agreement to
-11-


SILGAN HOLDINGS INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Information at March 31, 2020 and 2019 and for the
three months then ended is unaudited)
prepay all of our outstanding U.S. A term loans under the Credit Agreement. As a result of this prepayment, we recorded a pre-tax charge for the loss on early extinguishment of debt of $1.5 million during the first quarter of 2020 for the write-off of unamortized debt issuance costs.

2¼% SENIOR NOTES

The 2¼% Notes are general unsecured obligations of Silgan, ranking equal in right of payment with our existing and future unsecured unsubordinated indebtedness, including our 4¾% Senior Notes due 2025, or the 4¾% Notes, our 3¼% Senior Notes due 2025, or the 3¼% Notes, and the 4⅛% Notes, and ahead of our existing and future subordinated debt, if any. The 2¼% Notes are effectively subordinated to Silgan’s secured debt to the extent of the assets securing such debt and structurally subordinated to all obligations of subsidiaries of Silgan.

The 2¼% Notes will mature on June 1, 2028. Interest on the 2¼% Notes will be payable semi-annually in cash on January 15 and July 15 of each year, beginning on July 15, 2020. The 2¼% Notes were issued pursuant to an indenture by and among Silgan, U.S. Bank National Association, as trustee, Elavon Financial Services DAC, UK Branch, as paying agent, and Elavon Financial Services DAC, as registrar and transfer agent, which indenture contains covenants that are generally less restrictive than those in the Credit Agreement and substantially similar to the covenants in the indenture for the 4¾% Notes and the 3¼% Notes and the indenture for the 4⅛% Notes.
The 2¼% Notes are redeemable, at our option, in whole or in part, at any time after March 1, 2023, initially at 101.125 percent of their principal amount, plus accrued and unpaid interest to the redemption date, declining ratably to 100 percent of their principal amount, plus accrued and unpaid interest to the redemption date, on or after March 1, 2025.
In addition, prior to March 1, 2023, we may redeem up to 35 percent of the aggregate principal amount of the 2¼% Notes with the proceeds of certain equity offerings at a redemption price of 102.25 percent of their principal amount, plus accrued and unpaid interest to the date of redemption. We may also redeem the 2¼% Notes, in whole or in part, prior to March 1, 2023 at a redemption price equal to 100 percent of their principal amount plus a make-whole premium as provided in the indenture for the 2¼% Notes, together with accrued and unpaid interest to the date of redemption. We will be required to make an offer to repurchase the 2¼% Notes at a repurchase price equal to 101 percent of their principal amount, plus accrued and unpaid interest to the date of repurchase, upon the occurrence of a change of control repurchase event as provided in the indenture for the 2¼% Notes.























-12-


SILGAN HOLDINGS INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Information at March 31, 2020 and 2019 and for the
three months then ended is unaudited)
Note 8.               Financial Instruments

The financial instruments recorded in our Condensed Consolidated Balance Sheets include cash and cash equivalents, trade accounts receivable, trade accounts payable, debt obligations and swap agreements.  Due to their short-term maturity, the carrying amounts of trade accounts receivable and trade accounts payable approximate their fair market values.  The following table summarizes the carrying amounts and estimated fair values of our other financial instruments at March 31, 2020:

Carrying
Amount
Fair
Value
 (Dollars in thousands)
Assets:  
Cash and cash equivalents$614,846  $614,846  
Liabilities:  
Bank debt$856,239  $856,239  
4¾% Notes300,000  289,500  
3¼% Notes713,490  699,263  
4⅛% Notes599,009  553,500