JPMorgan Adjusts Pricing on $7.2 Billion Sealed Air Debt Deal Amid Investor Concerns

Banks led by JPMorgan Chase & Co. have raised the pricing on a $7.2 billion debt deal to finance Clayton, Dubilier & Rice’s acquisition of Sealed Air Corp., responding to investor concerns. The revised terms indicate a shift in lender appetite for risk as the private equity firm seeks to complete its takeover of the packaging company. The debt package includes a $4.1 billion U.S. dollar term loan and a $600 million-equivalent euro loan, both of which have seen their spreads widened to reflect higher borrowing costs. The U.S. dollar term loan’s pricing has been increased by as much as 0.5 percentage points, bringing the total spread to 4 percentage points over the benchmark rate. Similarly, the euro loan’s spread has been adjusted to 4.25 percentage points over the benchmark, according to a source familiar with the matter. The adjustments come as lenders seek to account for potential risks associated with the leveraged buyout, particularly in a market where debt financing conditions remain sensitive to macroeconomic uncertainties. The revised pricing underscores the challenges private equity firms face in securing favorable financing terms for large-scale acquisitions, especially in sectors where cash flow predictability may be a concern. Clayton, Dubilier & Rice’s proposed acquisition of Sealed Air Corp. is now contingent on finalizing these revised debt terms, which must be approved by participating lenders. The outcome of these negotiations could influence the broader landscape for leveraged buyouts, as market participants monitor how lenders balance risk and return in an evolving economic climate.