Banks Arrange $4.7bn Loan for CD&R’s Sealed Air Buyout
Banks have launched the sale of an almost $4.7bn leveraged loan to finance Clayton, Dubilier & Rice’s acquisition of Sealed Air, according to a report by Bloomberg, as cited in Private Equity Wire. JPMorgan is leading the placement of $4.1bn in US dollar-denominated loans, while BNP Paribas is arranging a $600m euro-denominated loan, with the financing supported by a syndicate of around 20 banks.
Details of the Loan Offering
The loans are part of a wider $7.15bn debt package that includes $1.35bn of senior secured notes, $600m equivalent of euro-denominated senior secured notes, and $500m of senior unsecured notes, as detailed in the Private Equity Wire article. Initial pricing discussions are set at 350–375 basis points over benchmark rates for the dollar tranche and 375–400 basis points for the euro tranche, with the loans offered at an original issue discount of 98.5 and including six months of 101 soft-call protection.
Margin Adjustments and Timeline
Margin step-downs for the loans are linked to leverage thresholds, with an additional reduction tied to a potential IPO, according to Private Equity Wire. A lender call is scheduled for 23 March, and commitments are due by 31 March, aligning with the ongoing process for the transaction.
Background on the Acquisition
CD&R agreed to acquire Sealed Air, the maker of Bubble Wrap, in November in a deal valuing the company at $6.2bn, with the transaction expected to complete in mid-2026. As widely known context, Sealed Air is a global packaging company, though this financing underscores the scale of debt arrangements in private equity buyouts.
