Home / Business and Economy / Sealed Air Buyout Fuels $7.9B Debt Frenzy
Sealed Air Buyout Fuels $7.9B Debt Frenzy
30 Jan
Summary
- Banks preparing to sell $7.9 billion in debt for Sealed Air buyout.
- Financing includes junk bonds yielding about 7% and leveraged loans.
- CD&R's acquisition of Sealed Air valued at $6.2 billion.
Financing is being prepared for Clayton Dubilier & Rice's acquisition of Sealed Air Corp., with banks ready to sell around $7.9 billion in debt as early as February. This move aims to fund the buyout of the packaging firm, known for inventing Bubble Wrap, which was valued at $6.2 billion in November.
The debt package is substantial, featuring approximately $4.5 billion in leveraged loans and a significant junk-bond offering. These bonds are anticipated to offer investors a yield of about 7% to 7.25%. The financing is expected to be issued in both dollars and euros, reflecting broad market interest.
This anticipated deal is among the largest buyout financings underwritten recently and follows a robust start to 2026 for junk-rated acquisition debt sales. Investor appetite for such risky debt appears strong, as evidenced by an even larger $8.75 billion financing for a medical-device maker's buyout. A much larger $20 billion financing for a videogame maker's buyout is also anticipated.
Banks including JPMorgan Chase & Co., Wells Fargo & Co., BNP Paribas SA, Goldman Sachs Group Inc., and UBS Group AG are involved in sounding out investor interest. Other committed lenders include Mizuho Financial Group Inc., Citigroup Inc., and Royal Bank of Canada. The acquisition, with an enterprise value of $10.3 billion, is expected to close by mid-2026, though deal specifics are still subject to change.
