Sealed Air Corporation
) announced that WRG Asbestos PI Trust, which is also the selling
stockholder, has agreed to sell 5 million shares in an underwritten
secondary offering on a bought deal basis. The offering has priced
at 10 cents per share.
Concurrently with and upon the completion of this offering, Sealed
Air has agreed to purchase $130 million shares from the selling
stockholder at the price at which the shares are sold to the
underwriter in the secondary offering.
Credit Suisse Securities (USA) LLC a subsidiary of
Credit Suisse Group AG
) will serve as the sole underwriter of the offering. No shares are
being sold by Sealed Air.
On Apr 30, Sealed Air reported first-quarter 2014 adjusted earnings
of 33 cents per share, up 43% year over year. The results also
surpassed the Zacks Consensus Estimate of 24 cents per share.
During the quarter, the company funded the W. R. Grace & Co.
Settlement and related accrued interest with $555 million of
accumulated cash and cash equivalents and $375 million from
committed credit facilities, contributing to the net cash used in
operating activities of $938 million in the three months ended
March 31, 2014.
For fiscal 2014, Sealed Air reiterated its guidance for net sales
to be relatively flat compared with net sales of $7.7 billion in
2013. Adjusted earnings per share, excluding impact of stock
appreciation rights (SARs) is also reaffirmed in the range of $1.50
Sealed Air will benefit from cost savings from its ongoing
Integration & Optimization Program as well as its recent
additional restructuring plan. However, economic uncertainty,
unfavorable foreign currency translation and volatility in raw
material price will continue to affect its results in 2014.
Elmwood Park, NJ-based Sealed Air is a major specialty packaging
service provider to a diverse range of end markets. The company
operates in the United States and in 50 other countries, producing
packaging and performance-based materials, and equipment systems
serving food, medical, industrial and consumer applications.
Sealed Air carries a Zacks Rank #3 (Hold).
Some favorably ranked stocks in the same industry include
Crown Holdings Inc.
Graphic Packaging Holding Co.
). While Crown Holdings holds a Zacks Rank #1 (Strong Buy), Graphic
Packaging sports a Zacks Rank #2 (Buy).
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SEALED AIR CORP (SEE): Free Stock Analysis
CREDIT SUISSE (CS): Free Stock Analysis Report
CROWN HLDGS INC (CCK): Free Stock Analysis
GRAPHIC PKG HLD (GPK): Free Stock Analysis
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