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Sealed Air Corporation's Leveraged Recapitalization (A)

Sealed Air Corporation's Leveraged Recapitalization (A)


* Required

What are the organizational disadvantages of leverage? *

Is there any evidence that the companys operating performance is improving? *

What is the sync between High Leverage and Manufacturing Excellence? *

As competitor, what do you think of Sealed Airs recapitalization? *

https://docs.google.com/a/astra.xlri.ac.in/forms/d/1kJhaLkzKT_hT9FCk-syQSBSSPkM5cQmSehfs6pm9Hk...

23-09-2015

Sealed Air Corporation's Leveraged Recapitalization (A)

As the investment banker, what do you think of Sealed Airs recapitalization? *

Why did the company lever up, if there are no good investment opportunities
today, why not pay out todays cash and see if anything crops up tomorrow? *

Is pursuing a program of manufacturing excellence such as World Class


Manufacturing (WCM) inconsistent with levering up? *

How much firm value was created? Where did it come from? *

https://docs.google.com/a/astra.xlri.ac.in/forms/d/1kJhaLkzKT_hT9FCk-syQSBSSPkM5cQmSehfs6pm9Hk...

23-09-2015

Sealed Air Corporation's Leveraged Recapitalization (A)

Was the constraint imposed on capital expenditures under the bank lending
agreement good or bad for the company? Do you think managers will be able to
successfully renegotiate this covenant? *

Did the recap create value? If so how much? Where did it come from? Would you
be concerned that managers are receiving big dividend checks? Why? *

Why did Sealed Airs investor base turnover completely after the recap? Is this
something managers should be concerned about? *

Explain the process of Special Dividend Transaction *

What will be the effect of the recapitalization on Firm Performance? *

https://docs.google.com/a/astra.xlri.ac.in/forms/d/1kJhaLkzKT_hT9FCk-syQSBSSPkM5cQmSehfs6pm9Hk...

23-09-2015

Sealed Air Corporation's Leveraged Recapitalization (A)

Would such an increase in leverage be good for all companies? Why or why not? *

What is the difference between free cash flow and financial slack? *

Why had Sealed Air been able to manufacture inefficiently and still have high
margins? *

What is free cash flow? How can it create organizational problems? *

As the manger against the recapitalization, what do you think of Sealed Airs
recapitalization? *

https://docs.google.com/a/astra.xlri.ac.in/forms/d/1kJhaLkzKT_hT9FCk-syQSBSSPkM5cQmSehfs6pm9Hk...

23-09-2015

Sealed Air Corporation's Leveraged Recapitalization (A)

Why did Dermot Dunphy, the CEO, feel it was necessary to change the companys
priorities and incentive structure following the recap? *

If you were a shareholder what would you want Dermot Dunphy to do with the
money? *

What should Sealed Air do with the Cash? *

Your Name: *

What are the organizational advantages of leverage? *

https://docs.google.com/a/astra.xlri.ac.in/forms/d/1kJhaLkzKT_hT9FCk-syQSBSSPkM5cQmSehfs6pm9Hk...

23-09-2015

Sealed Air Corporation's Leveraged Recapitalization (A)

As the manger for the recapitalization, what do you think of Sealed Airs
recapitalization? *

As the senior banker, what do you think of Sealed Airs recapitalization? *

Explain Sealed Airs Changing Competitive Environment *

Why did managers at Sealed Air experience a renewed interest in manufacturing?


*

As the subordinated lender, what do you think of Sealed Airs recapitalization? *

https://docs.google.com/a/astra.xlri.ac.in/forms/d/1kJhaLkzKT_hT9FCk-syQSBSSPkM5cQmSehfs6pm9Hk...

23-09-2015

Sealed Air Corporation's Leveraged Recapitalization (A)

Why did Sealed Air undertake a leveraged recapitalization? Do you think that it
was a good idea? For whom? *

As institutional investor, what do you think of Sealed Airs recapitalization? *

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https://docs.google.com/a/astra.xlri.ac.in/forms/d/1kJhaLkzKT_hT9FCk-syQSBSSPkM5cQmSehfs6pm9Hk...

23-09-2015

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