By Paul A. Harris
Portland, Ore., Nov. 15 - Sealed Air Corp. slashed its anticipated amount of issuance in half on Thursday, as it priced a $425 million tranche of non-callable eight-year senior notes (B1/BB-/) at par to yield 6½%, according to a syndicate source.
The yield came 12.5 basis points beyond the wide end of price talk that had been set in the 6¼% area.
Prior to downsizing what had been a two-part deal from $850 million, Sealed Air had also been expected to price an identically rated tranche of 10-year senior notes, which had been talked in the 6½% area.
Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Morgan Stanley & Co. LLC and RBS Securities Inc. were the joint bookrunners.
Proceeds, along with cash on hand, will be used to repurchase all of the company's outstanding notes due in 2013. Prior to downsizing the deal, Sealed Air had also planned to take out its notes maturing in 2017.
Sealed Air is an Elmwood Park, N.J.-based food safety and security, facility hygiene and product protection company.
| Issuer: | Sealed Air Corp.
|
| Amount: | $425 million, decreased from $850 million
|
| Maturity: | Dec. 1, 2020 (proposed 10-year tranche withdrawn)
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Morgan Stanley & Co. LLC, RBS Securities Inc.
|
| Co-managers: | HSBC Securities (USA) Inc., Mizuho Securities USA Inc., Scotia Capital (USA) Inc., SMBC Nikko Capital Markets Ltd., SunTrust Robinson Humphrey Inc.
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 530 bps
|
| Call protection: | Non-callable
|
| Make-whole: | Treasuries plus 50 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 15
|
| Settlement date: | Nov. 28
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 6¼% area
|
| Marketing: | Roadshow
|
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