Sealed Air Corporation’s Leveraged Recapitalization Final Paper Sealed Air Corporation: Leveraged Recapitulation 06/22/2015 Marilyn Grant: FHTMS 102577 Neomar Schenker: FHTMS Airtaiza Fraser: FHTMS MASTER’S PROGRAMME OF BUSINESS ADMINISTRATION University of Aruba Faculty of Hospitality, Tourism Management & International Business Studies Corporate Finance Prof. Donald Taylor TABLE OF CONTENTS Introduction 4 The competitive position and culture of the firm 5 Surviving changing market competition 7 Financial Ratio’s Analysis 8 Liquidity Measurement Ratios 9 Profitability Indicator Ratios 10 Debt Ratio Analysis 10 Value Created by Leveraged Recapitalization 14 Figure 7 20 Applying the Concepts of theories of Value 23 Reasons for Undertaking Leveraged Recapitalization 23 Evaluation & Monitors 24 Negative Net Worth 24 References & Appendix 27 Sealed Air Corporation’s Leveraged Recapitalization Introduction A special dividend was paid to the shareholders of the company when Sealed Air Corporation borrowed the total common stock for a value of 90% of its market value. This was a program which was basically initiated by the management of the company for improving the product quality and improving the efficiency of the manufacturing processes of the company. The leveraged recapitalization was used as a watershed event and this was done successfully and purposefully by the management of the company. Many internal changes occurred as a result
million shares of common stock had been repurchased on the open market by Marriott Corporation
Professor Thomas Piper prepared the original version of this note, “Assessing a Firm’s Future Financial Health,” HBS No. 201-077, which is being
By the end of 1999, Seagate had a BBB credit rating issued by S&P for its long-term debt. Based upon historical operating performance, it would seem that Seagate’s leverage ratio has high volatility due to its high volatility in market value of equity and operational performance. However, we believe that the current leverage ratio is above its optimal leverage because in 1998 the firm had a -2.72 EBIT interest coverage ratio using the greater debt load of $703 million on its books. In the recapitalization for the leveraged buyout, a
Consolidated Papers INC. "Annual Report to Stockholders. " 18 Apr. 1995. SEC Filings. LexisNexis. Rod Library, Cedar Falls. 15 Feb. 2009. Keyword: paper.
Three interrogations were thus to answer. Should the company provide investors with classic bonds or give them the opportunity to convert them into equity? Should they structure the offer with a fixed or a floating coupon rate? And last but not least, where should they locate the operation?
During this time, sales increased from: $7.11 billion in 2010 to $7.99 billion in 2012. Earnings improved from $2.84 to $3.57. While the total amount of dividends rose from $1.00 to $1.72. These figures are showing how the company has been continually increasing sales, earnings and dividends over the last three years. In the future, the management predicts that their current strategy will increase returns. As, executives believe that their focus on building the brand and accounting for costs will lead to net earnings of $5.20 to $7.19 annually by
Review of Financial Research Report: This assignment is an analysis of a US publicly-traded company; its common stock could be a prospective investment. The report is due in Week 10, in needs to be at least 5 pages, and it needs to cover the following topics:
From the humble financial portfolio as a crop dusting outfit in the mid twentieth century, to the multi-billion dollar portfolio of a major airline in the twenty first century, Delta Air Lines has risen as a successful business. The airline industry is directly affected by outside economic conditions and is also cyclical in nature. These factors make it very difficult for airlines to make predictions to stay financially afloat. Delta has ridden the bumpy path of the last twenty years and managed to survive. In the past twenty years there has been many events that
This paper will seek to analyze the financial statements of the O.M Scott & Sons Company during the years 1957-1961, in order to provide readers with a thorough understanding of the various factors that may influence the future success of this business. Additionally, recommendations based on an analysis of their financial
The Sealed Air corporation is committed to market leadership through technological innovation. Ten years ago, the company was first to market with a highly successful coated air-bubble packaging protection product, AirCap. However, market trends indicate a rapid displacement of coated bubble by a technologically inferior yet inexpensive uncoated product. Burgeoning demand for uncoated bubble poses a direct threat to the long-term viability of the technologically superior, premium priced AirCap.
The Sealed Air corporation is committed to market leadership through technological innovation. Ten years ago, the company was first to market with a highly successful coated air-bubble packaging protection product, AirCap. However, market trends indicate a rapid displacement of coated bubble by a technologically inferior yet inexpensive uncoated product. Burgeoning demand for uncoated bubble poses a direct threat to the long-term viability of the technologically superior, premium priced AirCap.
The course project involved developing a great depth of knowledge in analyzing capital structure, theories behind it, and its risks and issues. Before I began this assignment, I knew nothing but a few things about capital structure from previous unit weeks; however, it was not until this course’s final project that came along with opening
Our choices led to a constant increase in net income over the three years. Short term debt increase by approximately 100% percent but steadily reduced over the next three years. We were happy with the positive growth of the company and the fact that we were able to pay off most of the initial short term funding required by the increase in working capital requirement. Overall the current situation of the company in 2018 is good, although the total value created is less than 20% of that created in phase 1. From this we learned that the value of the firm can be significantly increased more through a reduction in working capital requirement than through increasing the firm’s sales and net income.
It also commenced the re-organization of the business and the markets. Although, everyone had a strong belief that company needs a new launch to take it out of the situation however till mid of 2007, they had no products. Additionally, the credibility of the CEO was
The two restructuring program implemented resulted in net loss. However the company continued to pay dividends which exceeded earnings. In 2004, it declared dividends in spite of heavy losses. The board did not declare any dividends for the two quarters of 2005, but committed itself to resuming dividend payment as soon as possible.