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Title:

Purchase Agreement

Entities:

Banc One Capital Markets, Inc.; Fleet Securities, Inc.; Plastipak Packaging Inc ; Wells Fargo Bank Minnesota, NA; Goldman, Sachs & Co.; Latham & Watkins

Date:

2001

Size:

Preview shows 10KB of 86KB total

Price:

$47

ID:

#2160329

 

 

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                            PLASTIPAK HOLDINGS, INC.



10.75% SENIOR NOTES DUE 2011


---------------

PURCHASE AGREEMENT


August 15, 2001


Goldman, Sachs & Co.,
As representative of the several Purchasers
named in Schedule I hereto,
c/o Goldman, Sachs & Co.
85 Broad Street,
New York, New York 10004

Ladies and Gentlemen:

Plastipak Holdings, Inc., a Michigan corporation (the "COMPANY"),
proposes, subject to the terms and conditions stated herein, to issue and sell
to the Purchasers named in Schedule I hereto (the "PURCHASERS") an aggregate of
$275,000,000 principal amount of the 10.75% Senior Notes due 2011 specified
above (the "SECURITIES"). The Securities will be unconditionally guaranteed as
to the payment of principal, premium, if any, and interest (the "GUARANTEES") by
each of the entities named in Schedule II hereto (each a "GUARANTOR" and,
collectively, the "GUARANTORS").

1. Each of the Company and the Guarantors, jointly and severally,
represents and warrants to, and agrees with, each of the Purchasers that:

(a) A preliminary offering circular, dated August 3, 2001 (the
"PRELIMINARY OFFERING CIRCULAR") and an offering circular, dated August 15, 2001
(the "OFFERING CIRCULAR") have been prepared in connection with the offering of
the Securities. Any reference to the Preliminary Offering Circular or the
Offering Circular shall be deemed to refer to and include any Additional Issuer
Information (as defined in Section 5(f)) furnished by the Company prior to the
completion of the distribution of the Securities. The Preliminary Offering
Circular or the Offering Circular and any amendments or supplements thereto did
not and will not, as of their respective dates, contain an untrue statement of a
material fact or omit to state a material fact necessary in order to make the




{PAGE}

statements therein, in the light of the circumstances under which they were
made, not misleading; provided, however, that this representation and warranty
shall not apply to any statements or omissions made in reliance upon and in
conformity with information furnished in writing to the Company by a Purchaser
through Goldman, Sachs & Co. expressly for use therein;

(b) Neither the Company nor any of its subsidiaries has sustained
since the date of the latest audited financial statements included in the
Offering Circular any material loss or interference with its business from fire,
explosion, flood or other calamity, whether or not covered by insurance, or from
any labor dispute or court or governmental action, order or decree, otherwise
than as set forth or contemplated in the Offering Circular; and, since the
respective dates as of which information is given in the Offering Circular,
there has not been any change in the capital stock or long-term debt of the
Company or any of its subsidiaries or any material adverse change, or any
development involving a prospective material adverse change, in or affecting the
general affairs, management, financial position, shareholders' equity or results
of operations of the Company and its subsidiaries, otherwise than as set forth
or contemplated in the Offering Circular;

(c) The Company and its Significant Subsidiaries (as defined in Rule
1-02(w) under Regulation S-X of the United States Securities Act of 1933, as
amended (the "SECURITIES ACT")) have good and marketable title in fee simple to
all real property and good and marketable title to all personal property owned
by them, in each case free and clear of all liens, encumbrances and defects
except such as are described in the Offering Circular or such as do not
materially affect the value of such property and do not interfere with the use
made and proposed to be made of such property by the Company and its Significant
Subsidiaries; and any real property and buildings held under lease by the
Company and its Significant Subsidiaries are held by them under valid,
subsisting and enforceable leases with such exceptions as are not material and
do not interfere with the use made and proposed to be made of such property and
buildings by the Company and its Significant Subsidiaries;

(d) The Company and each Guarantor have been duly incorporated or
formed, as the case may be, and are validly existing as a corporation, limited
liability company or limited partnership, as the case may be, in good standing
under the laws of their respective jurisdictions, with power and authority
(corporate and other) to own their properties and conduct their business as
described in the Offering Circular, and have been duly qualified as a foreign
corporation, limited liability company or limited partnership, as the case may
be, for the transaction of business and are in good standing under the laws of
each other jurisdiction in which they own or lease properties or conduct any
business so as to require such qualification, except where such failure to
qualify or be in good standing would not have a material adverse effect on the
Company and its subsidiaries taken as a whole. The Company and each Guarantor
are not subject to any material liability or disability by reason of the failure
to be so qualified in any such jurisdiction; and each subsidiary of the Company
has been duly incorporated and is validly existing as a corporation in good
standing under the laws of its jurisdiction of incorporation;

(e) The Company has an authorized capitalization as set forth in the
Offering Circular, and all of the issued shares of capital stock of the Company
have been duly and validly authorized and issued and are fully paid and
non-assessable; and all of the issued shares of capital stock of each subsidiary
of the Company have been duly and validly authorized and issued, are fully


2
{PAGE}

paid and non-assessable and (except for directors' qualifying shares and
except as otherwise set forth in the Offering Circular) are owned directly or
indirectly by the Company, free and clear of all liens, encumbrances, equities
or claims;

(f) The Securities have been duly authorized and, when issued and
delivered pursuant to this Agreement, will have been duly executed,
authenticated, issued and delivered and will constitute valid and legally
binding obligations of the Company enforceable in accordance with their terms
and entitled to the benefits provided by the indenture to be dated as of August
20, 2001 (the "INDENTURE") by and among the Company, the Guarantors and Wells
Fargo Bank Minnesota, National Association, as trustee, (the "TRUSTEE"), under
which they are to be issued, which will be substantially in the form previously
delivered to you subject, as to enforcement, to bankruptcy, insolvency,
reorganization and other laws of general applicability relating to or affecting
creditors' rights and to general equity principles; the Indenture has been duly
authorized and, when executed and delivered by the Company, the Guarantors and
the Trustee, the Indenture will constitute a valid and legally binding
instrument, enforceable in accordance with its terms, subject, as to
enforcement, to bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting creditors' rights and to general equity
principles; and the Securities and the Indenture will conform to the
descriptions thereof in the Offering Circular and will be in substantially the
form previously delivered to you;

(g) The Guarantees have been duly authorized by the Guarantors, and
when executed, authenticated, issued and delivered pursuant to this Agreement
and the Indenture, will constitute valid and legally binding obligations of the
Guarantors entitled to the benefits provided by the Indenture, enforceable in
accordance with their terms, subject, as to enforcement, to bankruptcy,
insolvency, reorganization and other laws of general applicability relating to
or affecting creditors' rights and to general equity principles. The Guarantees
will conform to the descriptions thereof in the Offering Circular;

(h) The exchange and registration rights agreement to be dated August
20, 2001, among the Company, the Guarantors and the Purchasers (the
"REGISTRATION RIGHTS AGREEMENT") has been duly authorized by the Company and the
Guarantors, and when executed and delivered by the Company and the Guarantors,
will constitute the valid and legally binding obligation of the Company and the
Guarantors, enforceable against the Company and the Guarantors in accordance
with its terms, subject, as to enforcement, to bankruptcy, insolvency,
reorganization and other laws of general applicability relating to or affecting
creditors' rights and to general equity principles. Pursuant to the Registration
Rights Agreement, the Company and the Guarantors will agree to file with the
Commission, under the circumstances set forth therein, (i) a registration
statement under the Securities Act relating to another series of debt securities
of the Company with terms substantially identical to the Securities (the
"EXCHANGE SECURITIES") to be offered in exchange for the Securities (the
"EXCHANGE OFFER"), and (ii) to the extent required by the Registration Rights
Agreement, a shelf registration statement pursuant to Rule 415 of the Securities

 

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