Banks Limp Over Finish Line on $7.2 Billion Sealed Air LBO Deal

The $7.2 billion debt package backing Clayton, Dubilier & Rice’s takeover of Sealed Air Corp. forced banks led by JPMorgan Chase & Co. to stretch — then again, then again — to get the deal over the finish line.

After three rounds of concessions this week, lenders sold the biggest chunk of the debt at one of the steepest discounts of the year. Those sorts of price cuts can erode fees, and, in extreme cases, even saddle them with losses on the transaction.

Banks that finance leveraged buyouts typically plan to place that debt with large investors, making ...