July 11, 2017 / 3:43 PM / 8 months ago

LPC-Diversey’s US$2.65bn buyout loan set for sell down

LONDON, July 11 (Reuters) - A US$2.65bn financing backing Bain Capital’s buyout of Sealed Air Corp’s cleaning and chemicals systems division and its food care division is set to launch for syndication, banking sources said.

Sealed Air Corp said in March it would sell Diversey Care and its food hygiene 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.

The large cross-border financing backing the buyout is set to launch for syndication to US and European investors later this week, with a bank meeting expected to follow, the sources said.

The financing comprises a US$1.8bn term loan and US$600m of unsecured bonds, with around 50% of it expected to be denominated in euros. There is also US$250m of undrawns facilities.

Credit Suisse and Goldman Sachs are leading the financing, alongside Bank of America Merrill Lynch, Barclays, Citigroup, HSBC, Jefferies, RBC and SunTrust.

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)

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