Sealed Air $300 million convert talked at 2.75-3.25% yield, up 47.5-52.5%

By Ronda Fears

Nashville, June 26 - Sealed Air Corp. launched a quick-sale $300 million of 30-year convertible notes talked to yield 2.75% to 3.25% with a 47.5% to 52.5% initial conversion premium.

Morgan Stanley, Citigroup and Credit Suisse First Boston are joint lead managers of the Rule 144A deal, which was slated to price after the close Thursday.

The senior notes will be noncallable for four years with puts in years seven, 10, 15, 20 and 25 at par.

There is a contingent conversion trigger if the stock is more than 120% of the initial conversion price, the bonds are below 98% of parity or if the notes are rated below BB+ by Standard & Poor's Corp. or Ba2 by Moody's Investors Service.

There is a $45 million greenshoe available.

Proceeds, plus proceeds from offerings of 10-year and 30-year straight senior notes, are earmarked to redeem Sealed Air's Series A convertible preferreds due 2018 at 51 for a total of $1.3 billion.

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