Markets
GPK

Secondary Offering by Sealed Air - Analyst Blog

Multiple stacks of coins
Credit: Shutterstock photo

Sealed Air Corporation ( SEE ) 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 ( CS ) 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 to $1.60.

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. ( CCK ) and Graphic Packaging Holding Co. ( GPK ). While Crown Holdings holds a Zacks Rank #1 (Strong Buy), Graphic Packaging sports a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

SEALED AIR CORP (SEE): Free Stock Analysis Report

CREDIT SUISSE (CS): Free Stock Analysis Report

CROWN HLDGS INC (CCK): Free Stock Analysis Report

GRAPHIC PKG HLD (GPK): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

GPK SEE CCK CS USA

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More