Sealed Air refinances with $1.18 billion and £29.4 million of loans

By Sarah Lizee

Olympia, Wash., July 18 – Sealed Air Corp. obtained a roughly $186.5 million term loan A facility, £29.4 million term loan A facility and $1 billion of revolving credit facilities, according to an 8-K filing with the Securities and Exchange Commission.

The new facilities refinanced the company’s term loan A facilities and revolving credit facilities.

The company and some of its subsidiaries entered into the third amended and restated syndicated facility agreement on July 12 with Bank of America, NA as agent.

The revolving facilities are available in dollars, euros, pounds sterling, Canadian dollars, Australian dollars, Japanese yen, New Zealand dollars and Mexican pesos.

The amendment also lowered the interest rate margin for the term loan A facilities and revolving credit facilities, which will range from Libor plus 125 basis points to 200 bps, subject to the achievement of leverage tests. Initially, interest is Libor plus 150 bps.

The commitment fee ranges from 20 bps to 35 bps.

The final maturity of the term loan A facilities and revolving credit commitment was extended to July 11, 2023.

Additionally, the amendment removed the requirement to prepay the loans with respect to excess cash flow and adjusted the financial maintenance covenant of consolidated net debt to consolidated EBITDA, as well as other covenants to provide additional flexibility.

Also, some non-U.S. asset collateral previously pledged by some of the company's subsidiaries was released.

Bank of America Merrill Lynch, BNP Paribas, Citibank, NA, Credit Agricole CIB, Goldman Sachs Bank USA, JPMorgan Chase Bank, NA and Mizuho Bank, Ltd. are joint lead arrangers, joint bookrunners and co-syndication agents.

Banco Bilbao Vizcaya Argentaria, SA New York Branch, HSBC Securities (USA) Inc., Morgan Stanley Senior Funding, Inc., MUFG Bank, Ltd., Cooperatieve Rabobank UA, New York Branch, Sumitomo Mitsui Banking Corp., SunTrust Bank and Wells Fargo Bank, NA are co-documentation agents.

Sealed Air is an Elmwood Park, N.J.-based manufacturer of packaging and performance-based materials and equipment systems that have food, industrial, medical and consumer applications.

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