Sealed Air driving by with $425 million 7.25-year senior notes; initial talk mid-to-high 7% area

By Paul a. Harris

Portland, Ore., Nov. 8 – Sealed Air Corp. and co-issuer Sealed Air Corp. (US) plan to price a $425 million offering of senior notes due February 2031 (Ba2/BB+) in a Wednesday drive-by trailing a conference call with investors, according to market sources.

The deal is in the market with initial guidance in the mid-to-high 7% area, according to a bond trader.

The Rule 144A and Regulation S for life 7.25-year notes become subject to an initial call in three years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the full coupon during the non-call period and have a 101% poison put.

Joint global coordinator BofA Securities Inc. is the left bookrunner. J.P. Morgan Securities LLC and Mizuho Securities USA Inc. are also joint global coordinators and joint bookrunners. BNP Paribas Securities Corp., Credit Agricole CIB and Rabo Securities USA Inc. are also joint bookrunners.

HSBC Securities (USA) Inc., Santander US Capital Markets LLC, TD Securities (USA) LLC and Citizens Capital Markets Inc. are the co-managers.

The Charlotte, N.C.-based food packaging and bubble wrap company plans to use the proceeds to repurchase any or all of its outstanding 5 1/8% notes due 2024 by means of its concurrent tender offer, with any remaining proceeds to be used for general corporate purposes.

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