CHARLOTTE, N.C. – Sealed Air Corporation (NYSE: NYSE:SEE) has successfully closed the offering of $400 million in senior notes, due in 2032, at a 6.500% interest rate, the company announced today. The notes were purchased at their full aggregate principal amount by investors.
The proceeds from this offering are earmarked primarily for the repurchase of SEE's outstanding 5.500% senior notes due in 2025, as part of a tender offer previously announced by the company.
Any remaining funds post-transaction are intended for general corporate purposes. SEE's tender offer is contingent upon the completion of the notes offering, which is now finalized, although the closing of the notes offering was not dependent on the tender offer's outcome.
SEE's senior notes and their guarantees have been offered solely to qualified institutional buyers and to non-U.S. persons outside the United States, in compliance with the Securities Act of 1933's Rule 144A and Regulation S, respectively. These notes have not been registered under the Securities Act and therefore cannot be offered or sold within the United States absent registration or an exemption from the registration requirements.
The company, a global leader in packaging solutions, integrates sustainable materials, automation, equipment, and services into its offerings. Renowned for brands such as CRYOVAC®, LIQUIBOX®, SEALED AIR®, AUTOBAG®, and BUBBLE WRAP®, SEE reported sales of $5.5 billion in 2023 and employs approximately 17,000 people worldwide.
This press release does not constitute an offer to sell the notes nor solicitation for the 2025 notes, and there has been no sale of the notes in any jurisdiction where such an action would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
The information provided here is based on a press release statement from Sealed Air Corporation.
InvestingPro Insights
As Sealed Air Corporation (NYSE: SEE) navigates its recent financial maneuvers, including the closure of its senior notes offering, investors and analysts are closely monitoring the company's performance metrics and valuation. According to real-time data from InvestingPro, SEE's market capitalization stands at $5.08 billion, reflecting the scale and reach of its global packaging solutions business.
InvestingPro Data indicates that SEE is trading at a Price/Earnings (P/E) ratio of 13.9, which adjusts to 11.43 when considering the last twelve months as of Q1 2024. This suggests a potentially attractive valuation for investors seeking earnings-driven investments. The company's Price/Book ratio as of the same period is 8.5, signaling a premium market valuation that may reflect the quality of its assets and its established brand presence in the packaging industry.
From an income standpoint, SEE's commitment to shareholder returns is highlighted by its track record of maintaining dividend payments for 19 consecutive years, a testament to its financial stability and disciplined capital allocation. This is complemented by a 2.27% dividend yield as of mid-2024, which provides an additional layer of return for investors.
InvestingPro Tips shed light on the company's financial outlook, with analysts predicting that SEE will be profitable this year. This is supported by the fact that the company has been profitable over the last twelve months. Moreover, SEE's valuation implies a strong free cash flow yield, which could be an attractive feature for investors looking for companies with the ability to generate cash after capital expenditures.
For more detailed analysis and additional InvestingPro Tips, which include earnings revisions by analysts and trading multiples, investors can explore Sealed Air Corporation's profile on InvestingPro. There are currently 12 additional tips available, offering deeper insights into SEE's financial health and market position. Interested investors can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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