Solo Cup starts roadshow for $325 million 10-year notes

By Paul A. Harris

St. Louis, Feb. 3 - Solo Cup Co. will hold a roadshow Tuesday through Feb. 12 for a $325 million offering of 10-year senior subordinated notes (B3/B-), a syndicate source said.

Banc of America Securities and Citigroup are joint bookrunners on the Rule 144A offering, which has registration rights. Harris Nesbitt is co-manager.

The notes, which will mature in 2014, come with five years of call protection.

Concurrently the company plans to obtain an $800 million credit facility.

Proceeds will be used to fund a portion of the acquisition of SF Holdings Group Inc., the parent holding company of Sweetheart Cup Inc., and related transactions. The equity sponsor is Vestar Equity Investment.

Solo Cup is based in Highland Park, Ill., and SF Holdings is based in Owings Mills, Md. Both companies are manufacturers and distributors of disposable food service and beverage-related products.

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