Sealed Air to redeem all 3% convertible notes due 2033 on July 19

By Devika Patel

Knoxville, Tenn., June 19 - Sealed Air Corp. said it will redeem all $431.25 million of its 3% convertible senior notes due 2033 at 100.43 in cash, plus interest, on July 19.

Consequently, the notes may be converted into common shares from June 19 through the close of business on July 17.

The current conversion rate is 30.3067 shares per $1,000 in notes, which is equivalent to a conversion price of $33.00 per share. The company's shares (NYSE: SEE) closed at $18.00 on June 18.

As long as the market price of the stock remains below $33.00 per share, investors who elect to convert will receive stock with a lower market value than the amount of cash receivable from this redemption.

If not converted, holders will receive a total of $1,004.29 per $1,000 in notes, plus interest up to, but not including, the redemption date.

The company will use the proceeds from its recent offering of 7⅞% senior notes due 2017, plus approximately $47 million in available cash to fund the redemption.

Sealed Air is an Elmwood Park, N.J.-based manufacturer of materials and systems for protective, presentation and fresh food packaging and performance solutions in the industrial, food and consumer markets.

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