SEE Announces Closing of Offering of Senior Notes
Sealed Air (SEE) announced the closing of a $400 million offering of 6.500% senior notes due 2032. The notes were sold at 100% of their principal amount and are guaranteed by SEE's wholly-owned domestic subsidiaries. The proceeds will be used to repurchase SEE's outstanding 5.500% senior notes due 2025 and to cover related costs. Any remaining funds will be used for general corporate purposes. The notes are offered only to qualified institutional buyers and non-U.S. persons under specific regulatory exemptions.
- Secured $400 million through senior notes offering.
- Proceeds to repurchase higher-interest 5.500% notes due 2025, potentially lowering interest expenses.
- Issuance of new debt may increase overall debt burden.
- Potential shareholder dilution due to new offerings.
Sealed Air Corporation (SEE) recently announced the closing of their offering of $400 million aggregate principal amount of 6.500% senior notes due 2032. This move is critical in shaping the company's financial structure and has several implications for investors.
Firstly, the issuance of new senior notes at 6.500% indicates the company's need to secure capital, possibly reflective of their current financial health and market conditions. These notes are senior unsecured debt, meaning they are prioritized over other unsecured debts in case of liquidation, but still behind secured debts. This positioning could signal to investors that SEE is confident in its ability to meet these obligations without needing to provide collateral. The fact that these notes are guaranteed by SEE’s wholly owned subsidiaries adds a layer of security, although it’s important to note the conditional nature of these guarantees.
Repurchasing the 2025 Notes with this capital is a strategic move to manage existing debt. The 2025 Notes have a lower interest rate of 5.500%, so replacing them with higher-rate notes could appear counterintuitive. However, considering the 2025 Notes might be maturing soon, this could be an effort to extend maturities and smooth out debt obligations, which might benefit SEE in the long term.
For retail investors, it's important to understand that this debt restructuring might stabilize the company’s immediate financial outlook but could also increase interest expenses. The net proceeds being potentially used for “general corporate purposes” might provide operational flexibility, but specifics on this usage are vague, warranting a cautious approach.
CHARLOTTE, N.C., June 28, 2024 /PRNewswire/ -- Sealed Air Corporation ("SEE") (NYSE: SEE) today announced, together with Sealed Air Corporation (US) (together with SEE, the "Issuers"), the closing of their previously announced offering of
SEE is using the net proceeds from the offering of the Notes, (i) to repurchase any or all of SEE's outstanding
The Notes and related guarantees have been offered only to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended (the "Securities Act"), and to non-
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor has there been any sale of the Notes, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This press release does not constitute an offer to purchase the 2025 Notes or a notice of satisfaction and discharge with respect to the 2025 Notes.
About SEE
Sealed Air Corporation (NYSE: SEE), is a leading global provider of packaging solutions that integrate sustainable, high-performance materials, automation, equipment and services. SEE designs, manufactures and delivers packaging solutions that preserve food, protect goods and automate packaging processes. We deliver our packaging solutions to an array of end markets including fresh proteins, foods, fluids and liquids, medical and life science, e-commerce retail, logistics and omnichannel fulfillment operations, and industrials. Our globally recognized solution brands include CRYOVAC® brand food packaging, LIQUIBOX® brand liquids systems, SEALED AIR® brand protective packaging, AUTOBAG® brand automated packaging systems, and BUBBLE WRAP® brand packaging. In 2023, SEE generated
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Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 concerning our business, consolidated financial condition, results of operations and cash flows. Forward-looking statements are subject to risks and uncertainties, many of which are outside our control, which could cause actual results to differ materially from these statements. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements can be identified by such words as "anticipate," "believe," "plan," "assume," "could," "should," "estimate," "expect," "intend," "potential," "seek," "predict," "may," "will" and similar references to future periods. All statements other than statements of historical facts included in this press release regarding our strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding expected future operating results, expectations regarding the results of restructuring and other programs, expectations regarding future impacts of acquisitions, anticipated levels of capital expenditures and expectations of the effect on our financial condition of claims, litigation, environmental costs, contingent liabilities and governmental and regulatory investigations and proceedings.
The following are important factors that we believe could cause actual results to differ materially from those in our forward-looking statements: global economic and political conditions, including recessionary and inflationary pressures, currency translation and devaluation effects, changes in raw material pricing and availability, competitive conditions, the success of new product offerings, failure to realize synergies and other financial benefits from acquisitions within the expected time frames, greater than expected costs or difficulties related to acquisition integrations, consumer preferences, the effects of animal and food-related health issues, the effects of epidemics or pandemics, negative impacts related to the ongoing conflict between
Company Contacts
Investor Relations
Brian Sullivan
brian.c.sullivan@sealedair.com
704.503.8841
Louise Lagache
Louise.lagache@sealedair.com
Media
Amanda Hoggarth
amanda.hoggarth@sealedair.com
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