Shearman & Sterling represented Banc of America Securities LLC as the lead arranger and Bank of America, N.A. as the administrative agent in a $200 million senior secured asset-based revolving credit facility for Solo Cup Company.

The facility is secured on a first-lien basis on accounts receivable, inventory, and related asset-based collateral, and a second-lien basis on other personal and real property, and was consummated simultaneously with the issuance of $300 million secured notes, which in turn are secured by the same collateral but with the opposite lien priorities. The intercreditor agreement contemplates the issuance of future additional secured debt with the same lien priorities as the secured notes, as well as debt secured by subordinated liens. The facility and the secured notes are also guaranteed by UK subsidiary guarantors and secured by certain of their assets under UK laws.

Located in Highland Park, Illinois, Solo Cup Company is a manufacturer of consumer packaging products, including disposable beverage cups, disposable plates and bowls.

The Shearman & Sterling team included partners Ronald Bayer (New York-Finance), Caroline Leeds Ruby (London-Finance), Iain Goalen (London-European Finance) and Andrew Tenzer (New York-Bankruptcy & Reorganization); counsels Benjamin Cheng (New York-Finance) and Jeffrey Salinger (New York-Property/Environmental); and associates Kevin Boon (New York-Finance), Emeka Charles Chinwuba (New York-Finance), Timothy Franklin (New York-Mergers & Acquisitions), Ian Graf (New York-Property), Shiu-Kay Hung (New York-Tax), Gloria Jung (New York-Intellectual Property), Seth Kerschner (New York-Property/Environmental), Hyun-Jeong Kim (New York-Executive Compensation & Employee Benefits), Owen McCarthy (New York-Finance), Tersia Pillay (London-Finance), Robert Sein (New York-Property) and James Simpson (London-Finance).