Solo Cup may tender for 10½%, 8½% notes with stock purchase deal

By Jennifer Chiou

New York, March 22 - Solo Cup Co. entered into a stock purchase agreement and Dart Container Corp. will now have the option to request that Solo Cup tender for its 10½% senior secured notes due 2013 and its 8½% senior subordinated notes due 2014, according to an 8-K filing with the Securities and Exchange Commission.

The company entered into the roughly $1 billion purchase agreement on Wednesday with Solo Cup Investment Corp., SCC Holding Co. LLC, Vestar Capital Partners IV, LP, Vestar Cup Investment, LLC, Vestar Cup Investment II, LLC, stockholders and Dart Container, under which Dart will purchase all of the outstanding capital stock of Solo Cup Investment from selling shareholders.

The transaction is anticipated by the end of the third quarter.

Dart also may request that Solo Cup satisfy and discharge the notes.

The purchase transaction is subject to customary closing conditions.

Solo Cup is a Lake Forest, Ill.-based manufacturer of packaging products for the food and beverage industry.

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