Sealed Air redeems $150 million of 12% notes under agreement with Davis Selected Advisers

By Lisa Kerner

Charlotte, N.C., Dec. 2 - Sealed Air Corp. completed an early redemption of $150 million of its outstanding $300 million 12% senior notes due Feb. 14, 2014 under a Nov. 30 note repurchase agreement with Davis Selected Advisers, LP.

Davis beneficially owned 37% of Sealed Air's common stock as of Feb. 2, 2010.

The company originally issued $150 million principal amount of notes to Davis and $150 million principal amount of notes to Berkshire Hathaway, Inc. in February 2009 in a private placement, according to a form 8-K filed with the Securities and Exchange Commission.

Sealed Air said it used cash to redeem the notes on Wednesday for $196 million, or 127% of par, including $5 million of accrued interest.

The company will record a $24 million charge to net earnings in the fourth quarter of 2010 and expects an annualized after-tax savings of $11 million from December 2010 through February 2014 as a result of 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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