Market Overview

Party City Announces Pricing of $500 Million of Senior Notes


Party City Holdco Inc. ("the Company" or "Party City") (NYSE:PRTY) today
announced the pricing of an offering by its wholly-owned subsidiary
Party City Holdings Inc. ("PCHI") of $500 million aggregate principal
amount of 6.625% senior 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 offering is expected to close on August
2, 2018, subject to customary closing conditions.

Concurrently with the closing of the offering, we expect to enter into
an amendment to PCHI's senior secured asset-based revolving credit
facility (the "ABL Facility"), which will extend the maturity date of
the ABL Facility to the date that is the five year anniversary of the
closing of the amendment. Under certain circumstances, the maturity of
the ABL Facility may spring to an earlier date if PCHI does not extend
the maturity dates of its senior secured term loan facility or its
6.125% senior notes due 2023. Consummation of the offering is not
conditioned upon the consummation of the amendment to the ABL Facility
and vice versa.

The net proceeds from the sale of the Notes are expected to be used to
repay $400 million of term loans and $90 million of loans under the ABL
Facility and to pay all related fees and expenses.

The Notes will be guaranteed by each subsidiary that guarantees PCHI's
senior credit facilities.

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 circular.

About Party City

Party City Holdco Inc. is the leading decorated party goods retailer by
revenue in North America and, it believes, the largest vertically
integrated supplier of decorated party goods globally by revenue. With
approximately 950 locations (inclusive of franchised stores), Party City
has the only coast-to-coast network of party superstores in the U.S. and
Canada and such stores make it easy and fun to enhance special occasions
with a differentiated shopping experience and an unrivaled assortment of
innovative and exciting merchandise offered at a compelling value. Party
City also operates multiple e-commerce sites, principally under the
domain name

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, 2017
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.

View Comments and Join the Discussion!