Party City Announces Offering of Senior Secured Notes to Refinance Term Loan Maturing 2022
February 09 2021 - 8:00AM
Party City Holdco Inc. (“the Company” or “Party City”) (NYSE: PRTY)
today announced the proposed offering by its wholly-owned
subsidiary Party City Holdings Inc. (“PCHI”) of $725 million
aggregate principal amount of senior secured notes due 2026 (the
“Notes”). The Notes and the related Notes guarantees will be
offered in a private offering to persons reasonably believed to be
qualified institutional buyers pursuant to Rule 144A under the
Securities Act of 1933, as amended (the “Securities Act”), and to
non-U.S. persons in accordance with Regulation S under the
Securities Act. The precise timing, size and terms of the offering
are subject to market conditions and other factors.
We intend to use the net proceeds from the offering to repay all
outstanding borrowings under our term loan facility maturing 2022,
to pay related fees and expenses and for general corporate
purposes, which may include debt repurchases.
The Notes will be guaranteed by each restricted subsidiary that
guarantees PCHI’s senior credit facilities. The Notes and related
guarantees will be secured by a first priority lien on
substantially all assets of the issuer and the guarantors, except
for the collateral that secures the senior credit facilities on a
first lien basis, with respect to which the Notes and related
guarantees will be secured by a second priority lien.
The Notes and the related Notes guarantees have not been
registered under the Securities Act or any state securities laws.
The Notes may not be offered or sold in the United States or to, or
for the benefit of, U.S. persons absent registration under, or an
applicable exemption from, the registration requirements of the
Securities Act and applicable state securities laws.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the Notes or any other security and
shall not constitute an offer, solicitation or sale in any
jurisdiction in which, or to any persons to whom, such offering,
solicitation or sale would be unlawful. Any offers of the Notes
will be made only by means of a private offering memorandum.
About Party City
Party City Holdco Inc. is a popular one-stop shopping
destination for party supplies, balloons, and costumes. In addition
to being a great retail brand, the Company is a global, world-class
organization that combines state-of-the-art manufacturing and
sourcing operations, and sophisticated wholesale operations
complemented by a multi-channel retailing strategy and e-commerce
retail operations. The Company designs, manufactures, sources and
distributes party goods, including paper and plastic tableware,
metallic and latex balloons, Halloween and other costumes,
accessories, novelties, gifts and stationery throughout the world.
The Company’s retail operations include approximately 830 specialty
retail party supply stores (including franchise stores) throughout
North America operating under the names Party City and Halloween
City, and e-commerce websites.
Forward-Looking Statements
Any statements in this release regarding Party City that are not
historical or current facts are forward-looking statements. Such
forward-looking statements convey Party City’s current expectations
or forecasts of future events. Forward-looking statements regarding
Party City involve known and unknown risks, uncertainties and other
factors that may cause Party City’s actual results, performance or
achievements to be materially different from any future results,
performances or achievements expressed or implied by the
forward-looking statements. Certain of these risks and
uncertainties are described in the “Risk Factors” and
“Forward-Looking Statements” sections of Party City’s Annual Report
on Form 10-K for the fiscal year ended December 31, 2019 and any of
Party City’s other applicable filings with the Securities and
Exchange Commission. Unless required by law, Party City undertakes
no obligation to publicly update or revise any forward-looking
statements to reflect circumstances or events after the date of
this press release.
Contact:
Investor Relations
ICR
Farah Soi and Rachel Schacter
203-682-8200
InvestorRelations@partycity.com
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