SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G/A
Under The Securities Exchange Act of 1934
(Amendment No. 1)
KapStone Paper and Packaging Corporation
(formerly known as Stone Arcade Acquisition Corporation)
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(Name of Issuer)
Common Stock, $0.0001 par value per share
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(Title of Class of Securities)
861575108
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(CUSIP Number)
December 31, 2006
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(Date of Event Which Requires Filing of this statement)
Check the appropriate box to designate the rule pursuant to which this
Schedule is filed:
[ ] Rule 13d-1(b)
[X] Rule 13d-1(c)
[ ] Rule 13d-1(d)
The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
Page 1 of 11 Pages
CUSIP No. 861575108 13G/A Page 2 of 11 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
D.B. Zwirn & Co., L.P. 20-0597442
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF (5) SOLE VOTING POWER
0
SHARES ________________________________________________________________
BENEFICIALLY (6) SHARED VOTING POWER
1,930,000 Shares
Warrants to purchase 220,000 Shares
OWNED BY ________________________________________________________________
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING ________________________________________________________________
PERSON WITH (8) SHARED DISPOSITIVE POWER
1,930,000 Shares
Warrants to purchase 220,000 Shares
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
1,930,000 Shares
Warrants to purchase 220,000 Shares
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(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES **
[ ]
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(11) PERCENT OF CLASS REPRESENTED
8.52%
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(12) TYPE OF REPORTING PERSON **
PN
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 861575108 13G/A Page 3 of 11 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
D.B. Zwirn Special Opportunities Fund, Ltd.
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands, British West Indies
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NUMBER OF (5) SOLE VOTING POWER
0
SHARES ________________________________________________________________
BENEFICIALLY (6) SHARED VOTING POWER
940,238 Shares
Warrants to purchase 140,800 Shares
OWNED BY ________________________________________________________________
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING ________________________________________________________________
PERSON WITH (8) SHARED DISPOSITIVE POWER
940,238 Shares
Warrants to purchase 140,800 Shares
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
940,238 Shares
Warrants to purchase 140,800 Shares
-------------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES **
[ ]
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(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
4.30%
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(12) TYPE OF REPORTING PERSON **
CO
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 861575108 13G/A Page 4 of 11 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
D.B. Zwirn Special Opportunities Fund, L.P. 73-1637217
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF (5) SOLE VOTING POWER
0
SHARES ________________________________________________________________
BENEFICIALLY (6) SHARED VOTING POWER
989,762 Shares
Warrants to purchase 79,200 Shares
OWNED BY ________________________________________________________________
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING ________________________________________________________________
PERSON WITH (8) SHARED DISPOSITIVE POWER
989,762 Shares
Warrants to purchase 79,200 Shares
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
989,762 Shares
Warrants to purchase 79,200 Shares
-------------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES **
[ ]
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(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
4.26%
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(12) TYPE OF REPORTING PERSON **
PN
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 861575108 13G/A Page 5 of 11 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
DBZ GP, LLC 42-1657316
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF (5) SOLE VOTING POWER
0
SHARES ________________________________________________________________
BENEFICIALLY (6) SHARED VOTING POWER
1,930,000 Shares
Warrants to purchase 220,000 Shares
OWNED BY ________________________________________________________________
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING ________________________________________________________________
PERSON WITH (8) SHARED DISPOSITIVE POWER
1,930,000 Shares
Warrants to purchase 220,000 Shares
-------------------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
1,930,000 Shares
Warrants to purchase 220,000 Shares
-------------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES **
[ ]
-------------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
8.52%
-------------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON **
OO
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 861575108 13G/A Page 6 of 11 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Zwirn Holdings, LLC 30-0080444
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
-------------------------------------------------------------------------------
NUMBER OF (5) SOLE VOTING POWER
0
SHARES ________________________________________________________________
BENEFICIALLY (6) SHARED VOTING POWER
1,930,000 Shares
Warrants to purchase 220,000 Shares
OWNED BY ________________________________________________________________
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING ________________________________________________________________
PERSON WITH (8) SHARED DISPOSITIVE POWER
1,930,000 Shares
Warrants to purchase 220,000 Shares
-------------------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
1,930,000 Shares
Warrants to purchase 220,000 Shares
-------------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES **
[ ]
-------------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
8.52%
-------------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON **
OO
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 861575108 13G/A Page 7 of 11 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Daniel B. Zwirn
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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NUMBER OF (5) SOLE VOTING POWER
0
SHARES ________________________________________________________________
BENEFICIALLY (6) SHARED VOTING POWER
1,930,000 Shares
Warrants to purchase 220,000 Shares
OWNED BY ________________________________________________________________
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING ________________________________________________________________
PERSON WITH (8) SHARED DISPOSITIVE POWER
1,930,000 Shares
Warrants to purchase 220,000 Shares
-------------------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
1,930,000 Shares
Warrants to purchase 220,000 Shares
-------------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES **
[ ]
-------------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
8.52%
-------------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON **
IN
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 861575108 13G/A Page 8 of 11 Pages
This Amendment No. 1 (this "Amendment") amends the statement on Schedule 13G
filed on September 27, 2006 (as amended, the "Schedule 13G") with respect to
warrants and shares of Common Stock, par value $0.0001 per share ("Common
Stock") of KapStone Paper and Packaging Corporation, a Delaware corporation (the
"Company") (the "Shares"). Capitalized terms used herein and not otherwise
defined in this Amendment have the meanings set forth in the Schedule 13G. This
Amendment amends and restates Items 2(a), 2(b), 2(c), 4, 5 and 8 in their
entirety as set forth below.
Item 2(a). Name of Person Filing
Item 2(b). Address of Principal Business Office
Item 2(c). Citizenship
D.B. Zwirn & Co, L.P.
745 Fifth Avenue, 18th Floor
New York, NY 10151
Citizenship: Delaware
D.B. Zwirn Special Opportunities Fund, L.P.
c/o D.B. Zwirn & Co., L.P.
745 Fifth Avenue, 18th Floor
New York, NY 10151
Citizenship: Delaware
D.B. Zwirn Special Opportunities Fund, Ltd.
c/o Goldman Sachs (Cayman) Trust, Limited
P.O. Box 896 George Town
Harbour Centre, 2nd Floor
Grand Cayman, Cayman Islands
British West Indies
Citizenship: Cayman Islands, British West Indies
DBZ GP, LLC
c/o D.B. Zwirn & Co., L.P.
745 Fifth Avenue, 18th Floor
New York, NY 10151
Citizenship: Delaware
Zwirn Holdings, LLC
c/o D.B. Zwirn & Co., L.P.
745 Fifth Avenue, 18th Floor
New York, NY 10151
Citizenship: Delaware
Daniel B. Zwirn
c/o D.B. Zwirn & Co., L.P.
745 Fifth Avenue, 18th Floor
New York, NY 10151
Citizenship: United States
Item 4. Ownership
(a) Amount Beneficially Owned
As of the date of this filing, D.B. Zwirn & Co., L.P., DBZ GP, LLC, Zwirn
Holdings, LLC, and Daniel B. Zwirn may each be deemed the beneficial owner of
(i) 989,762 Shares and warrants to purchase 79,200 Shares owned by D.B. Zwirn
CUSIP No. 861575108 13G/A Page 9 of 11 Pages
Special Opportunities Fund, L.P. and (ii) 940,238 Shares and warrants to
purchase 140,800 Shares owned by D.B. Zwirn Special Opportunities Fund, Ltd.
(each entity referred to in (i) through (ii) is herein referred to as a "Fund"
and, collectively, as the "Funds").
D.B. Zwirn & Co., L.P. is the manager of each of the Funds, and
consequently has voting control and investment discretion over the Shares and
the warrants held by each of the Funds. Daniel B. Zwirn is the managing member
of and thereby controls Zwirn Holdings, LLC, which in turn is the managing
member of and thereby controls DBZ GP, LLC, which in turn is the general partner
of and thereby controls D.B. Zwirn & Co., L.P. The foregoing should not be
construed in and of itself as an admission by any Reporting Person as to
beneficial ownership of Shares and warrants owned by another Reporting Person.
In addition, each of D.B. Zwirn & Co., L.P., DBZ GP, LLC, Zwirn Holdings, LLC,
and Daniel B. Zwirn disclaims beneficial ownership of the Shares and the
warrants held by the Funds.
(b) Percent of Class
Based upon the Issuer's Quarterly Report on form 10-Q/A filed on December
12, 2006, there were 25,000,000 Shares outstanding as of November 10, 2006.
Therefore, (i) D.B. Zwirn Special Opportunities Fund, L.P. owns approximately
4.26% of the outstanding Shares, (ii) D.B. Zwirn Special Opportunities Fund,
Ltd. owns approximately 4.30% of the outstanding Shares and (iii) each of D.B.
Zwirn & Co., L.P., DBZ GP, LLC, Zwirn Holdings, LLC, and Daniel B. Zwirn may be
deemed to beneficially own 8.52% of the outstanding Shares. In calculating the
percentage of Shares held by the Reporting Persons, we assumed the exercise of
the reported warrants. The foregoing should not be construed in and of itself as
an admission by any Reporting Person as to beneficial ownership of Shares and
warrants owned by another Reporting Person.
(c) Number of shares as to which such person has:
(i) Sole power to vote or to direct the vote:
See Item 4(a)
(ii) Shared power to vote or to direct the vote
See Item 4(a)
(iii) Sole power to dispose or to direct the disposition of
See Item 4(a)
(iv) Shared power to dispose or to direct the disposition of
See Item 4(a)
Item 5. Ownership of Five Percent or Less of a Class
Not applicable.
Item 8. Identification and Classification of Members of the Group
See Exhibit I of Schedule 13G filed on September 27, 2006 with respect to
the Shares of the Company.
Exhibits:
Exhibit I: Power of attorney for Daniel B. Zwirn dated February 5, 2007.
CUSIP No. 861575108 13G/A Page 10 of 11 Pages
SIGNATURES
After reasonable inquiry and to the best of its knowledge and belief, each of
the undersigned certifies that the information with respect to it set forth in
this statement is true, complete, and correct.
Dated: February 5, 2007
D.B. ZWIRN SPECIAL OPPORTUNITIES D.B. ZWIRN SPECIAL OPPORTUNITIES
FUND, L.P. FUND, LTD.
By: D.B. Zwirn & Co., L.P. By: D.B. Zwirn & Co., L.P.
By: DBZ GP, LLC, By: DBZ GP, LLC,
its General Partner its General Partner
By: Zwirn Holdings, LLC, By: Zwirn Holdings, LLC,
its Managing Member its Managing Member
D.B. ZWIRN & CO., L.P. DBZ GP, LLC
By: DBZ GP, LLC, By: Zwirn Holdings, LLC,
its General Partner its Managing Member
By: Zwirn Holdings, LLC,
its Managing Member
ZWIRN HOLDINGS, LLC
By: /s/ Lawrence D. Cutler
----------------------------
Name: Lawrence D. Cutler
Title: Authorized Signatory
/s/ Lawrence D. Cutler
--------------------------
LAWRENCE D. CUTLER, as
Attorney-in-Fact for Daniel
B. Zwirn
CUSIP No. 861575108 13G/A Page 11 of 11 Pages
EXHIBIT I
POWER OF ATTORNEY
The undersigned hereby appoints David C. Lee and Lawrence D. Cutler, or
either of them, his true and lawful attorney-in fact and agent to execute and
file with the Securities and Exchange Commission any Schedule 13D, Schedule 13G,
any amendments thereto and any related documentation which may be required to be
filed in his individual capacity as a result of the undersigned's beneficial
ownership of, or participation in a group with respect to, securities directly
or indirectly beneficially owned by D.B. Zwirn & Co, L.P. or any of its
affiliates, and granting unto said attorney-in-fact and agent full power and
authority to do and perform each and every act and thing which he might or could
do in person, hereby ratifying and confirming all that said attorney-in-fact and
agent may lawfully do or cause to be done by virtue hereof. The authority of
David C. Lee and Lawrence D. Cutler, or either of them, under this Power of
Attorney shall continue with respect to the undersigned until the undersigned is
no longer required to file Schedule 13Ds or Schedule 13Gs unless revoked earlier
in writing.
Date: February 5, 2007
/s/ Daniel B. Zwirn
--------------------------------
Daniel B. Zwirn