Solo Cup Co. predicts better times ahead in filing
URBANA – Solo Cup Co., which last week announced plans to issue $300 million in senior secured notes, reported Monday that it's seeing "an improving business climate."
Nevertheless, it predicted net sales for the second quarter of 2009 will be 20 to 30 percent lower than the same quarter a year ago.
In a filing Monday with the Securities and Exchange Commission, Solo Cup said the business climate seems to be better in the second quarter of 2009 than it was in the first quarter.
"We believe these improvements are due to customer de-stocking activity, seasonal demand increases, increased sales of new products, sales to new customers and the sale of additional items to existing customers," the Highland Park-based company reported.
The company also disclosed its net debt was cut by $28 million – from $650 million to $622 million from March to May – as a result of reductions in the quantity and cost of inventory.
Proceeds from the $300 million in senior secured notes – along with proceeds from bank refinancing – are to be used to repay amounts owed under the company's first lien credit agreement and to pay expenses related to the debt offering and bank financing.
Company spokeswoman Angie Gorman said the financing agreement would replace, among other things, a term loan that comes due in 2011.
Solo Cup employs about 300 at its plant at 1505 E. Main St., U. That plant makes plastic cups, lids and containers for use by restaurants, food-service companies and retail consumers.
Also on this date
- UI trustees committee cuts tuition increase
- Cheer up, Broadmeadow students: one more summer...
- Coroner's jury: Death was justifiable homicide
- Coroner's jury finds Kaiyewu shooting 'justifiable homicide'
- Hoopeston man sentenced in fatal drug case
- One man charged with shooting two women
- Decisions expected on Champaign magnet schools' themes
- Man charged with DUI for hitting house
- UI researchers' work flies Air Hobbico to help Boeing
- Obituaries