CHARLOTTE, N.C. - Sealed Air Corporation (NYSE: NYSE:SEE) today initiated a cash tender offer for all its outstanding 5.500% Senior Notes due in 2025. The offer is contingent on the terms outlined in the company’s Offer to Purchase and the accompanying Notice of Guaranteed Delivery.
The tender offer targets a principal amount of $400 million in notes, with a fixed spread of 50 basis points over a U.S. Treasury Reference Security. The offer is scheduled to expire on Monday, June 24, 2024, at 5:00 p.m. New York City time, unless extended or terminated earlier by the company. Withdrawals of tenders are allowed until the same deadline.
Holders who validly tender their notes before the expiration date, or who deliver a Notice of Guaranteed Delivery in time, and whose notes are accepted for purchase, will receive the total consideration calculated by the fixed spread plus the yield to maturity of the U.S. Treasury Reference Security. The total consideration will also include accrued and unpaid interest up to, but not including, the expected Settlement Date of Thursday, June 28, 2024.
The completion of the tender offer is subject to certain conditions, which include the successful offering and sale of new debt securities by SEE on acceptable terms. The company has expressed intentions to satisfy and discharge any outstanding notes not tendered in the offer, although this is not guaranteed.
SEE has appointed J.P. Morgan Securities LLC as the exclusive Dealer Manager for the tender offer, with Global Bondholder Services Corporation acting as the depositary and information agent. SEE cautions that the tender offer does not represent an offer to purchase or a solicitation of an offer to sell any securities.
This announcement is based on a press release statement and does not constitute an offer to sell or the solicitation of an offer to buy any securities. The tender offer is being made exclusively through the Offer Documents, which detail the full terms and conditions of the offer. The information provided here is for informational purposes only and is not to be construed as a recommendation by SEE or any affiliated party regarding the tender offer.
In other recent news, Sealed Air Corporation has experienced a series of executive transitions. Jannick Thomsen, Vice President and Chief People & Digital Officer, and Tobias Grasso, Jr., President of the Americas division, have both agreed to step down from their executive roles, transitioning into advisory positions until July 2024. The company has yet to announce successors or share further details on these leadership changes.
In the financial realm, Sealed Air has seen a positive response from analysts. Mizuho upgraded the company's stock rating from Neutral to Buy, raising the price target to $50.00. This change was based on anticipated improvements in Sealed Air's volume trends. Additionally, Citi increased its price target for Sealed Air from $42.00 to $44.00, maintaining a Buy rating, following a strong performance in the first quarter of 2024.
On the earnings front, Sealed Air reported steady growth during its recent earnings call. The company achieved net sales of $1.33 billion and an adjusted EBITDA of $278 million, marking a 4% increase from the previous year. Despite a 1% decrease in net sales on a constant currency basis, Sealed Air managed to reduce debt and maintain a strong free cash flow.
InvestingPro Insights
In light of Sealed Air Corporation's (NYSE: SEE) recent move to initiate a cash tender offer for its outstanding senior notes, investors may be evaluating the company's financial health and growth prospects. According to InvestingPro data, SEE has a market capitalization of $5.33 billion and is trading at a Price / Earnings (P/E) ratio of 14.69, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at 11.99. This suggests a relatively favorable earnings multiple compared to the market.
The Price / Book (P/B) ratio for the same period stands at 8.91, indicating that the market values the company at a premium to its book value, which can be a sign of investor confidence in the firm's future growth or its intangible assets. Additionally, SEE has maintained a steady dividend yield of 2.19%, with dividend payments being consistent for 19 consecutive years, a testament to the company's commitment to returning value to shareholders.
InvestingPro Tips highlight that while analysts have revised their earnings downwards for the upcoming period, they also predict the company will be profitable this year, having been profitable over the last twelve months. These insights could be particularly useful for investors considering taking part in the tender offer or evaluating the company's stock for their portfolio. For those interested in more detailed analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/SEE. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more expert insights.
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