Moody's affirms Sealed Air on acquisition news

Moody's Investors Service said it affirmed the Ba2 corporate family rating and Ba2-PD probability of default rating of Sealed Air Corp.

The agency also said it affirmed Sealed Air's senior secured revolving credit facility Baa3 (LGD 2), senior secured term loan A at Baa3 (LGD 2), senior unsecured regular bond/debentures at Ba3 (LGD 4) and guaranteed senior unsecured regular bond/debentures at Ba3 (LGD 4.)

Moody's also affirmed and Sealed Air Ltd.'s senior secured term loan A at Baa3 (LGD 2).

The affirmations follow news that the company entered into a definitive agreement to acquire Automated Packaging Systems in an all debt-financed transaction, which includes a purchase price of $510 million on a cash and debt-free basis, Moody's said.

The transaction is expected to be financed by existing or new credit facilities, the agency said.

Moody's also said it affirmed the speculative liquidity rating of SGL-2.

The outlook is stable.

The ratings reflect an expectation of an improvement in credit metrics and an expectation that the company will manage its financial policy to maintain credit metrics at the Ba2 level going forward, the agency said.

The ratings also consider Sealed Air's exposure to the higher growth e-commerce end market and automated packaging systems, Moody's said.

The acquisition also will further increase the company's exposure to the more stable food end market, the agency said.

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