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Sealed Air cancels tender for 7 7/8% notes, amends other offer terms
By Susanna Moon
Chicago, Nov. 16 - Sealed Air Corp. said it terminated the cash tender offer for its $400 million of 7 7/8% senior notes due 2017 and amended the terms of the offer for its $400 million of 5 5/8% senior notes due 2013.
The tender offer is now conditioned on obtaining at least $400 million of proceeds from a new issue, down from $800 million of new senior notes, according to a company press release. The company also needs to receive consents for a majority of the outstanding notes.
The company launched a roughly $800 million term loan B on Nov. 5, then slashed the size of the issue, pricing a $425 million tranche of non-callable eight-year senior notes at par on Nov. 15 to yield 6½%, as reported by Prospect News.
As noted before, the total purchase price in the offer for the 5 5/8% notes will be $1,032.50 per $1,000 principal amount. The total price includes a payment of $30 for notes tendered by 5 p.m. ET on Nov. 27, the consent payment deadline.
The company had planned to pay $1,078.75 for each $1,000 of the 7 7/8% notes.
Holders who tender after this date will receive $1,002.50 per $1,000 of notes.
The tender offer will end at 11:59 p.m. ET on Dec. 11. The offer began on Nov. 13.
The company will also pay accrued interest up to but excluding the settlement date, which will be Nov. 28 for notes tendered by the consent deadline.
The company is also soliciting consents to eliminate some of the restrictive covenants in the notes and to shorten the minimum notice period for redemption to three days from 30 days.
Notes may not be withdrawn after the consent deadline.
Bank of America Merrill Lynch (888 292-0070 or collect 980 387-3907) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 470-4500 or 212 430-3774) is the information agent.
Sealed Air is an Elmwood Park, N.J.-based food safety and security, facility hygiene and product protection company.
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