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Sealed Air Announces Amendment to Credit Facility

  //house-home.news-articles.net/content/2008/12/1 .. -air-announces-amendment-to-credit-facility.html
  Published in House and Home on Monday, December 15th 2008 at 8:16 GMT by Market Wire

ELMWOOD PARK, N.J.--([ BUSINESS WIRE ])--Sealed Air Corporation (NYSE:SEE) announced today that the Company and its lenders have signed an amendment to its principal revolving credit facility effective December 12, 2008. This amendment modifies certain calculations of the financial covenants and definitions in the credit facility, including changes to the definition of earnings before interest, taxes, depreciation and amortization (EBITDA) to more closely match the cash flows available for debt service. In addition, while the current total amount available for borrowing under the credit facility is approximately $472 million, the amendment also provides a mechanism to increase the total facility size to a maximum of $750 million. This does not represent a commitment by the lenders to increase the facility size; rather, it provides the Company with a simplified method of requesting an increase at a later date if desired and market conditions permit.

The Company has also increased the maximum purchase limit for receivables interests under its accounts receivable securitization program by $25 million to $160 million.

These modifications will provide the Company with additional financing flexibility, which may be used for general corporate purposes, including funding of cash obligations. Pricing on the credit facility and the securitization program has increased; the effect on earnings in 2009 and future years will be dependent upon the amounts utilized. The fees associated with the amendments to the credit facility will be amortized over its remaining life.

Business

Sealed Air is a leading global innovator and manufacturer of a wide range of packaging and performance-based materials and equipment systems that serve an array of food, industrial, medical, and consumer applications. Operating in 51 countries, Sealed Air's international reach generated revenue of $4.7 billion in 2007. With widely recognized brands such as Bubble Wrap^® cushioning, Jiffy^® protective mailers, Instapak^® foam-in-place systems and Cryovac^® packaging technology, Sealed Air continues to identify new trends, foster new markets, and deliver innovative solutions to its customers. For more information about Sealed Air, please visit the Company's web site at [ www.sealedair.com ].

Forward-Looking Statements

Some of the Company's statements in this press release are forward-looking. These include comments as to future events affecting the Company's business, which are based upon management's current expectations and are subject to risks and uncertainties, many of which are outside the Company's control. These can be identified by such words as "estimates," "expects," "intends," "plans," "should," "will" and similar expressions. The following are important factors that the Company believes could cause actual results to differ materially from those in the Company's forward-looking statements: raw material costs; general economic and market conditions; credit availability, ratings and pricing; the success of the Company's growth, profitability and global manufacturing strategies and its cost reduction and productivity program; the effects of animal and food-related health issues; tax, interest and foreign exchange rates; and legal proceedings. A more extensive description of these statements and other risk factors can be found in the Company's most recent Quarterly Report on Form 10-Q.