Banks led by JPMorgan are facing investor resistance over a $7.2bn debt package supporting Clayton, Dubilier & Rice’s acquisition of Sealed Air.

The financing, which includes approximately $2.45bn in bonds and $4.7bn in loans, has attracted around $5bn in orders so far, indicating uneven demand across the capital structure.

Investors have raised concerns about deal terms, particularly provisions that would allow CD&R to spin off parts of the business, potentially weakening the asset base underpinning the debt.

As a result, some lenders are pushing for stronger protections before committing capital, reflecting a shift in negotiating power amid more cautious market conditions.

Pricing discussions have also moved wider, with secured bond yields now in the high 7% range, compared to earlier expectations in the low 7% range, while unsecured notes are being discussed around 9%.

The transaction comes at a time when global credit markets are facing increased volatility, driven by geopolitical tensions and concerns over economic growth. Banks are also contending with a backlog of buyout-related debt, as they seek to distribute large financing packages in a more challenging environment.

The outcome of the financing process will be closely watched as an indicator of broader market appetite for leveraged buyout debt in 2026.

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