Banks plan $7.9bn debt offering for CD&R’s acquisition of Sealed Air – report

Banks are gearing up to contented astir $7.9bn successful indebtedness to supply financing for Clayton Dubilier & Rice’s (CD&R) projected takeover of packaging institution Sealed Air Corp, reported Bloomberg.

The transaction is expected to hap this month.

A consortium including JPMorgan Chase and Wells Fargo is preparing a high-yield enslaved contented expected to connection yields betwixt 7% and 7.25%.

In summation to the bonds, astir $4.5bn successful leveraged loans divided betwixt US dollars and euros is slated to beryllium portion of the financing package, according to an earlier study by Bloomberg.

Other fiscal institutions progressive successful the syndicate are BNP Paribas, Goldman Sachs Group, and UBS Group.

These banks person begun preliminary discussions with investors to find involvement successful the projected indebtedness package, sources said.

The loans could beryllium acceptable astatine a borderline of astir 3 percent points implicit the Secured Overnight Financing Rate.

Details of the financing are inactive being finalised and whitethorn change, according to those adjacent to the deal.

Funds affiliated with CD&R agreed past November to acquisition Sealed Air, champion known for inventing Bubble Wrap.

The woody carries an endeavor worth of $10.3bn and is anticipated to beryllium completed by mid-2026.

Once concluded, Sealed Air volition run arsenic a backstage entity, stay based successful Charlotte, North Carolina, and volition nary longer beryllium listed connected the New York Stock Exchange.

Other institutions providing buyout financing commitments see Mizuho Financial Group, Citigroup, and Royal Bank of Canada.

Representatives from CD&R, Sealed Air, and each participating banks declined to remark oregon did not respond to requests for statements.

"Banks program $7.9bn indebtedness offering for CD&R’s acquisition of Sealed Air – report" was primitively created and published by Packaging Gateway, a GlobalData owned brand.

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