Business News
SOLO CUP COMPANY SUCCESSFULLY COMPLETES PRIVATE PLACEMENT OF SENIOR SECURED NOTES
Monday 06. July 2009 - Company Simultaneously Closes Transaction for Asset-Based Credit Facility
Solo Cup Company (the “Company”), a leading provider of single-use foodservice products, together with Solo Cup Operating Corporation (“SCOC”), an indirect wholly owned subsidiary of the Company, today announced that they have successfully completed the previously announced private placement of $300 million of senior secured notes due 2013 (the “Notes”).
The Notes have an interest rate of 10.5% and were sold at 97.928% of the aggregate principal amount, for gross proceeds of approximately $294 million, representing a yield to maturity of 11.125%. The Notes were issued and sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States pursuant to Regulation S under the Securities Act.
In connection with the issuance of the Notes, the Company and SCOC entered into a new assetbased revolving credit facility, which provides for revolving credit of up to $200 million, subject to borrowing base limitations and other specified terms and conditions.
The Company used the proceeds from the Notes offering, together with initial borrowings under the new asset-based revolving credit facility, to repay all amounts outstanding under the Companys first lien credit agreement and to pay the fees, expenses and other costs relating to the issuance of the Notes and the asset-based credit facility.
The Notes have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements of the Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.