SEE Announces Pricing of Senior Notes
Sealed Air (SEE) announced the pricing of its 6.500% senior notes due 2032. The notes are guaranteed by SEE's existing and future wholly owned domestic subsidiaries. The net proceeds of approximately $396 million will be used to repurchase SEE's outstanding 5.500% senior notes due 2025 and for general corporate purposes. The offering is expected to close on June 28, 2024, subject to customary conditions. The new notes will be offered to qualified buyers under Rule 144A and to non-U.S. persons under Regulation S.
- SEE successfully priced new 6.500% senior notes due 2032.
- Net proceeds from the offering expected to be approximately $396 million.
- Proceeds to be used for repurchasing outstanding 5.500% notes due 2025.
- Expected closing date of the offering is June 28, 2024.
- Issuance of new senior notes increases company debt obligations.
- The high interest rate of 6.500% could lead to increased future interest expenses.
- Dependence on successful closing of the offering to execute tender offer for 2025 notes.
The pricing of Sealed Air Corporation's (SEE) 6.500% senior notes due 2032 is worth a detailed examination for investors, particularly considering its implications on debt management and financial health. The decision to use the proceeds to repurchase the existing 5.500% senior notes due 2025 reveals a strategic move to manage debt maturity profiles and interest expenses. By locking in a fixed interest rate of 6.500% for an extended period, SEE aims to mitigate the refinancing risk associated with the 2025 notes.
An important point here is the interest rate increase from 5.500% to 6.500%. This reflects the current market conditions and potentially tighter credit environment. While this results in higher interest costs, it also extends the term of the debt, providing longer-term financial stability. The net proceeds are expected to be approximately
For retail investors, it's essential to understand that the tender offer and the repurchasing of existing notes might indicate SEE's anticipation of a favorable market for long-term debt issuance. In the short term, this strategy could lead to an increase in the company's leverage, but it potentially stabilizes their debt structure in the long run.
From a regulatory perspective, the issuance of these senior notes under Rule 144A and Regulation S of the Securities Act of 1933 is notable. Rule 144A allows the notes to be sold to qualified institutional buyers without the need for registration, which can speed up the process and reduce costs. For non-U.S. investors, Regulation S provides an exemption that facilitates the sale of securities outside the United States.
The guarantees on the notes by SEE’s wholly owned subsidiaries add another layer of assurance for investors, although it is important to note that these guarantees are subject to release under certain conditions. This means that the protection provided by these guarantees is not absolute and can change, potentially impacting the risk profile of these notes.
Retail investors should be aware that the notes are not registered and can't be easily traded in the public markets. This restriction can affect liquidity and resale value, which is a important consideration for any investor looking into such securities.
The Issuers intend to use the net proceeds from the offering of the Notes, (i) to repurchase any or all of SEE's outstanding
The Notes and related guarantees will be 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 shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be 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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We routinely post important information for investors on our website in the Investors section. We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
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
Christina Griffin
christina.griffin@sealedair.com
704.430.5742
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SOURCE SEE
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