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SealedAirCorporation'sLeveragedRecapitalization(A)
* Required

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

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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? *

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

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

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

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

*

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? *
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Your Name: *


Is pursuing a program of manufacturing excellence such as World Class

Manufacturing (WCM) inconsistent with levering up? *

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

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

Explain Sealed Airs Changing Competitive Environment *

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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?
*

Explain the process of Special Dividend Transaction *

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

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

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

What are the organizational advantages of leverage?

*

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

What should Sealed Air do with the Cash? *

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

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

What are the organizational disadvantages of leverage?

*

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

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

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

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

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

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