LONDON May 18 Banks are preparing to launch a
US$2.65bn financing backing Bain Capital’s buyout of Sealed Air
Corp's cleaning and chemicals systems division Diversey
Care as well as its food care division, sources close to the
The debt is expected to be split between the US and European
leveraged finance markets.
Sealed Air Corp said in March it would sell its cleaning and
chemicals systems division, Diversey Care, and its food hygiene
and cleaning business to Bain Capital for about US$3.2bn, as it
focuses on its higher-margin businesses. The two divisions will
be put together and called New Diversey.
Credit Suisse and Goldman Sachs are leading the financing,
alongside Bank of America Merrill Lynch, Barclays, Citigroup,
HSBC, Jefferies, RBC and SunTrust, the sources said.
The financing comprises a US$1.8bn term loan and US$600m of
unsecured bonds, with around 50% of the financing expected to be
denominated in euros. There is also US$250m of undrawns
facilities, the sources said.
The financing is due to launch for syndication before the
summer and is expected to be welcomed by investors on both sides
of the Atlantic, eager for new paper, the sources said.
Bain was not immediately available to comment.
Charlotte, North Carolina-based Sealed Air acquired Diversey
in 2011 from its controlling shareholders, the Johnson family
and private equity firm Clayton, Dubilier & Rice LLC, in a
US$4.3bn cash-and-stock deal.
Sealed Air said it would use the proceeds to repay debt,
repurchase shares, maintain its net leverage ratio in the range
of 3.5-4.0 times and fund core growth initiatives.
(Editing by Christopher Mangham)