LONDON, May 18 (Reuters) - 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 deal said.
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)