Published on 11/8/2023 in the Prospect News High Yield Daily.
New Issue: Sealed Air prices $425 million 7.25-year notes at par to yield 7¼%
By Paul a. Harris
Portland, Ore., Nov. 8 – Sealed Air Corp. and co-issuer Sealed Air Corp. (US) priced a $425 million issue of senior notes due Feb. 15, 2031 (Ba2/BB+) at par to yield 7¼% in a Wednesday drive-by, according to market sources.
The yield printed at the tight end of yield talk in the 7 3/8% area. Initial guidance was in the mid-to-high 7% area.
Joint global coordinators and joint bookrunners were BofA Securities Inc., J.P. Morgan Securities LLC and Mizuho Securities USA Inc. Additional joint bookrunners were BNP Paribas Securities Corp., Credit Agricole CIB and Rabo Securities USA Inc.
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.
| Issuers: | Sealed Air Corp. and Sealed Air Corp. (US)
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| Amount: | $425 million
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| Issue: | Senior notes
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| Maturity: | Feb. 15, 2031
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| Joint global coordinators: | BofA Securities Inc., J.P. Morgan Securities LLC and Mizuho Securities USA Inc.
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| Left bookrunner: | BofA Securities Inc.
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| Joint bookrunners: | J.P. Morgan Securities LLC, Mizuho Securities USA Inc., BNP Paribas Securities Corp., Credit Agricole CIB and Rabo Securities USA Inc.
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| Co-managers: | HSBC Securities (USA) Inc., Santander US Capital Markets LLC, TD Securities (USA) LLC and Citizens Capital Markets Inc.
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| Coupon: | 7¼%
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| Price: | Par
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| Yield: | 7¼%
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| Spread: | 272 bps
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| First call: | Nov. 15, 2026 at 103.625
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| Trade date: | Nov. 8
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| Settlement date: | Nov. 20
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| Ratings: | Moody’s: Ba2
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| S&P: BB+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 7 3/8% area
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| Marketing: | Drive-by
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