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Debt and Credit Facilities | 9 Months Ended
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Sep. 30, 2012
Debt and Credit Facilities | (11) Debt and Credit Facilities Our total debt outstanding consisted of the amounts included in the table below.
|  | September 30, 2012 |  |  | December 31, 2011 |
Short-term borrowings |  | $ | 49.0 |  |  | $ | 34.5 |
Current portion of long-term debt, less unamortized discount of $0.1 in 2012 |  |  | 402.0 |  |  |  | 1.9 |
Total current debt |  |  | 451.0 |  |  |  | 36.4 |
5.625% Senior Notes due July 2013, less unamortized discount of $0.3 in 2011(1)(2) |  |  | 0 |  |  |  | 401.0 |
12% Senior Notes due February 2014(1) |  |  | 154.2 |  |  |  | 156.3 |
Term Loan A Facility due October 2016, less unamortized lender fees of $14.7 in 2012 and $19.6 in 2011(3) |  |  | 875.1 |  |  |  | 945.7 |
7.875% Senior Notes due June 2017, less unamortized discount of $5.7 in 2012 and $6.5 in 2011 |  |  | 394.3 |  |  |  | 393.5 |
Term Loan B Facility due October 2018, less unamortized lender fees of $18.1 in 2012 and $21.3 in 2011 and unamortized discount of $23.4 in 2012 and $26.5 in 2011(3) |  |  | 1,111.2 |  |  |  | 1,118.8 |
8.125% Senior Notes due September 2019 |  |  | 750.0 |  |  |  | 750.0 |
8.375% Senior Notes due September 2021 |  |  | 750.0 |  |  |  | 750.0 |
6.875% Senior Notes due July 2033, less unamortized discount of $1.4 in 2012 and 2011 |  |  | 448.6 |  |  |  | 448.6 |
Other |  |  | 2.9 |  |  |  | 2.8 |
Total long-term debt, less current portion |  |  | 4,486.3 |  |  |  | 4,966.7 |
Total debt(4) |  | $ | 4,937.3 |  |  | $ | 5,003.1 |
(1) | Amount includes adjustments due to interest rate swaps. See “Interest Rate Swaps,” of Note 12, “Derivatives and Hedging Activities,” for further discussion.
(2) | Our 5.625% Senior Notes mature in July 2013. Accordingly, we reclassed the carrying value of these notes to current portion of long-term debt from long-term debt, less current portion in July 2012.
(3) | In the nine months ended September 30, 2012, we prepaid our 2013 Term Loan A ($78 million) and Term Loan B ($8 million) installments.
(4) | The weighted average interest rate on our outstanding debt was 6.4% as of September 30, 2012 and 2.6% as of December 31, 2011.
Credit Facility In connection with the funding of the cash consideration for the acquisition and the repayment of existing indebtedness of Diversey and to provide for ongoing liquidity requirements, on October 3, 2011, we entered into a senior secured credit facility (the “Credit Facility”). The Credit Facility consists of: (a) a multicurrency term loan A facility denominated in U.S. dollars, Canadian dollars, euros and Japanese yen, (“Term Loan A Facility”), (b) a multicurrency term loan B facility denominated in U.S. dollars and euros (“Term Loan B Facility”) and (c) a $700 million revolving credit facility available in U.S. dollars, Canadian dollars, euros and Australian dollars (“Revolving Credit Facility”). Our obligations under the Credit Facility have been guaranteed by certain of Sealed Air’s subsidiaries and secured by pledges of certain assets and the capital stock of certain of our subsidiaries. In connection with entering into the Credit Facility, we terminated our former global credit facility and European credit facility. The U.S. dollar denominated tranche of the Term Loan B Facility was sold to investors at 98% of its principal amount, and the euro-denominated tranche of the Term Loan B Facility was sold to investors at 97% of its principal amount. As a result, we recorded $28 million of original issuance discounts, which are included in the carrying amount of the Term Loan B Facility. We also recorded $48 million of lender fees related to the transactions mentioned above. These fees are also included in the carrying amount of the respective debt instruments. In addition, we recorded $51 million of non-lender fees related to the transactions mentioned above. These fees are included in other assets on our condensed consolidated balance sheet. The amortization expense of the original issuance discount and lender and non-lender fees are calculated using the effective interest rate method over the lives of the respective debt instruments. Total amortization expense related to the debt instruments above was $6 million in the three months ended September 30, 2012 and $17 million in the nine months ended September 30, 2012. These amounts are included in interest expense on our condensed consolidated statements of operations. The Revolving Credit Facility may be used for working capital needs and general corporate purposes, including the payment of the amounts required upon effectiveness of the Settlement agreement (defined below in Note 15, “Commitments and Contingencies”). We did not use our Revolving Credit Facility in the nine months ended September 30, 2012, and no amounts were outstanding as of September 30, 2012 or December 31, 2011. The Credit Facility provides for customary events of default, including failure to pay principal or interest when due, failure to comply with covenants, the fact that any representation or warranty made by Sealed Air is false in any material respect, certain insolvency or receivership events affecting Sealed Air and its subsidiaries and a change in control of Sealed Air. For certain events of default, the commitments of the lenders will be automatically terminated, and all outstanding obligations of Sealed Air under the Credit Facility may be declared immediately due and payable. Lines of Credit The following table summarizes our available lines of credit and committed and uncommitted lines of credit, including the Revolving Credit Facility discussed above, and the amounts available under our accounts receivable securitization program. We are not subject to any material compensating balance requirements in connection with our lines of credit.
|  | September 30, 2012 |  |  | December 31, 2011 |
Used lines of credit |  | $ | 49.0 |  |  | $ | 34.5 |
Unused lines of credit |  |  | 991.3 |  |  |  | 1,028.7 |
Total available lines of credit |  | $ | 1,040.3 |  |  | $ | 1,063.2 |
Available lines of credit—committed |  | $ | 703.0 |  |  | $ | 703.9 |
Available lines of credit—uncommitted |  |  | 337.3 |  |  |  | 359.3 |
Total available lines of credit |  | $ | 1,040.3 |  |  | $ | 1,063.2 |
Accounts receivable securitization program—committed(1) |  | $ | 118.0 |  |  | $ | 92.0 |
(1) | See Note 9, “Accounts Receivable Securitization Program,” for further details of this program.
Other Lines of Credit Substantially all our short-term borrowings of $49 million at September 30, 2012 and $35 million at December 31, 2011 were outstanding under lines of credit available to several of our foreign subsidiaries. The following table details our other lines of credit.
|  | September 30, 2012 |  |  | December 31, 2011 |
Available lines of credit |  | $ | 340.4 |  |  | $ | 363.2 |
Unused lines of credit |  |  | 291.3 |  |  |  | 328.7 |
Covenants Each issue of our outstanding senior notes imposes limitations on our operations and those of specified subsidiaries. The Credit Facility contains customary affirmative and negative covenants for credit facilities of this type, including limitations on our indebtedness, liens, investments, restricted payments, mergers and acquisitions, dispositions of assets, transactions with affiliates, amendment of documents and sale leasebacks, and a covenant specifying a maximum permitted ratio of Consolidated Net Debt to Consolidated EBITDA (as defined in the Credit Facility). We were in compliance with the above financial covenants and limitations at September 30, 2012.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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