Debt and Credit Facilities

6 Months Ended

Jun. 30, 2011

Debt and Credit Facilities [Abstract]

Debt and Credit Facilities

(9) Debt and Credit Facilities

     Our total debt outstanding consisted of the amounts included in the table below.

	June 30,		December 31,
	2011		2010
Short-term borrowings	$	9.8	$	23.5
Current portion of long-term debt		1.9		6.5
Total current debt		11.7		30.0
5.625% Senior Notes due July 2013, less unamortized discount of $0.3 in 2011 and $0.4 in 2010(1)		400.7		399.4
12% Senior Notes due February 2014(1)		156.6		156.0
7.875% Senior Notes due June 2017, less unamortized discount of $6.9 in 2011 and $7.4 in 2010		393.1		392.6
6.875% Senior Notes due July 2033, less unamortized discount of $1.4 in 2011 and $1.5 in 2010		448.6		448.5
Other		2.9		2.7
Total long-term debt, less current portion		1,401.9		1,399.2
Total debt	$	1,413.6	$	1,429.2

(1) Amount includes adjustments due to interest rate swaps. See “Interest Rate Swaps,” of Note 10, “Derivatives and Hedging Activities,” for further discussion.

Lines of Credit

     The following table summarizes our available lines of credit and committed and uncommitted lines of credit, including the global credit facility and European credit facility, which are discussed below, and the amounts available under our accounts receivable securitization program. Our principal credit lines were committed and consisted of the global credit facility and the European credit facility. We are not subject to any material compensating balance requirements in connection with our lines of credit. We anticipate that the global credit facility and the European credit facility will be refinanced as part of the proposed financing in connection with the proposed acquisition of Diversey. See Note 3, “Proposed Acquisition of Diversey Holdings, Inc.” for further details.

	June 30,		December 31,
	2011		2010
Used lines of credit	$	9.8	$	23.5
Unused lines of credit		941.6		902.8
Total available lines of credit	$	951.4	$	926.3
Available lines of credit—committed	$	686.2	$	671.2
Available lines of credit—uncommitted		265.2		255.1
Total available lines of credit	$	951.4	$	926.3
Accounts receivable securitization program—committed(1)	$	91.0	$	91.0

(1) See Note 5, “Accounts Receivable Securitization Program,” for further details of this program.

Global Credit Facility

     The global credit facility is available for general corporate purposes, including the payment of amounts required to be paid upon the effectiveness of the Settlement agreement as defined and discussed in Note 13, “Commitments and Contingencies.” We may re-borrow amounts repaid under the facility from time to time before its expiration or earlier termination. Our obligations under the facility bear interest at floating rates, which are generally determined by adding the applicable borrowing margin to the base rate or the interbank rate for the relevant currency and time period. The facility provides for changes in borrowing margins based on our long-term senior unsecured debt ratings. The facility has an expiration date of July 26, 2012. As of June 30, 2011, the total amount available under the global credit facility was $472 million.

     Facility fees are payable at the rate of 0.20% per annum on the total amounts available under the global credit facility. The facility provides for changes in fees based on our long-term senior unsecured debt ratings. Also, certain U.S. subsidiaries would be required to guarantee obligations under the facility if our long-term senior unsecured debt ratings by both Moody’s and Standard & Poor’s are below investment grade.

     The terms of our global credit facility and our European credit facility, discussed below, include a requirement that, upon the occurrence of specified events that would adversely affect the Settlement agreement or would materially increase our liability in respect of the W. R. Grace bankruptcy or the asbestos liability arising from the Cryovac transaction, we would be required to repay any amounts outstanding under these facilities or refinance these facilities within 60 days.

     We did not utilize this facility in the six months ended June 30, 2011 and there were no amounts outstanding under this facility at June 30, 2011 and December 31, 2010.

European Credit Facility

     We have a €150 million European credit facility, which was equivalent to U.S. $214 million at June 30, 2011. The facility has an expiration date of July 26, 2012. A syndicate of banks made this facility available to Sealed Air and a group of our European subsidiaries for general corporate purposes, including the payment of amounts required to be paid upon effectiveness of the Settlement agreement. The terms of this facility are substantially similar to the terms of our global credit facility. We may re-borrow amounts repaid under the European credit facility from time to time before the expiration or earlier termination of the facility.

     We did not utilize this facility in the six months ended June 30, 2011 and there were no amounts outstanding under this facility at June 30, 2011 and December 31, 2010.

Other Lines of Credit

     Substantially all our short-term borrowings of $10 million at June 30, 2011 and $24 million at December 31, 2010 were outstanding under lines of credit available to several of our foreign subsidiaries. The following table details our other lines of credit.

	June 30,			December 31,
	2011			2010
Available lines of credit	$	265.2		$	257.8
Unused lines of credit		255.4			234.3
Weighted average interest rate		7.4	%		7.4	%

Covenants

     Each issue of our outstanding senior notes imposes limitations on our operations and those of specified subsidiaries. The principal limitations restrict liens, sale and leaseback transactions and mergers, acquisitions and dispositions. Our global credit facility and our European credit facility contain financial covenants relating to interest coverage, debt leverage and minimum liquidity and restrictions on the creation of liens, the incurrence of additional indebtedness, acquisitions, mergers and consolidations, asset sales, and amendments to the Settlement agreement discussed above. We were in compliance with the above financial covenants and limitations, as applicable, at June 30, 2011.