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(Bloomberg) — Banks are preparing to sell about $7.9 billion in debt as early as February to finance Clayton Dubilier & Rice’s buyout of packaging firm Sealed Air Corp.
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JPMorgan Chase & Co. and Wells Fargo & Co. are among the lenders working on a junk-bond offering that could yield about 7% to 7.25%, according to people with knowledge of the matter. The debt package, which is expected to be in dollars and euros, also includes about $4.5 billion of leveraged loans, Bloomberg previously reported.
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The highly-anticipated deal — one of the biggest buyout financings underwritten in the past few months — would follow an active start to 2026 for junk-rated acquisition debt sales that have been mostly well received. An even larger $8.75 billion financing to fund the buyout of medical-device maker Hologic Inc. showed demand for risky debt is strong.
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Other large deals yet to launch to investors include a roughly $20 billion financing to fund the buyout of videogame maker Electronic Arts Inc.
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Sounding out investors
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The group of banks on the Sealed Air deal, which also includes BNP Paribas SA, Goldman Sachs Group Inc. and UBS Group AG, has been contacting investors to gauge their interest, said the people, who asked not to be identified because they’re not authorized to speak publicly.
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The loan part of the debt package could be priced in the 3 percentage point range above the Secured Overnight Financing Rate, they said.
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Plans haven’t been finalized and could still change, the people said.
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Representatives for CD&R, Sealed Air and all the banks either declined to comment or didn’t immediately respond to requests for comment.
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CD&R agreed to buy Sealed Air in November in a deal that valued the Bubble Wrap inventor at $6.2 billion. The acquisition has an enterprise value of $10.3 billion and is expected to close in mid-2026.
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Mizuho Financial Group Inc., Citigroup Inc. and Royal Bank of Canada also committed buyout financing to CD&R for Sealed Air, according to a statement.
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