Banks have begun the sale of nearly $4.7bn in leveraged loans to help fund Clayton Dubilier & Rice’s (CD&R) planned purchase of packaging manufacturer Sealed Air, reported Bloomberg.
According to sources, JPMorgan Chase is leading the syndication of $4.1bn in dollar loans while BNP Paribas is overseeing the sale of a $600m euro-denominated loan.
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Furthermore, 20 additional banks are also participating in the financing arrangement.
Preliminary discussions put pricing for the dollar and euro loans at 3.5-3.75 and 3.75-4 percentage points over respective benchmarks.
Both loans include an original issue discount of 98.5 and soft-call protection for six months at 101, according to the sources.
The terms provide two step-downs of 25 basis points each if first lien net leverage ratios fall to 4.90× and 4.40×, and another 25 basis point reduction tied to an IPO event.
Lenders have been invited to a call on 23 March, with commitments due by 31 March.
This loan package is part of a wider $7.15bn financing plan that also includes $1.35bn in senior secured notes, $600m equivalent in euro-denominated secured notes, and $500m in unsecured notes.
CD&R announced its agreement to acquire Sealed Air last November in a $10.3bn deal. The deal is projected to close by mid-2026.
Sealed Air reported $44m in net income for the fourth quarter of 2025, swinging from a net loss of under $1m during the same period a year earlier.
For all of 2025, net sales totalled $5.36bn, down less than 1% from 2024.
Sales in the food division were largely unchanged; protective segment sales declined by 2%. Full-year net income rose to $441m from $270m in the prior year.
