Party City may repurchase 8 7/8% notes, PIK notes with stock proceeds

By Tali Rackner

Minneapolis, Jan. 21 - Party City Holdco Inc. plans to use the proceeds from a $500 million common stock offering to repay or repurchase debt, including amounts outstanding under its senior credit facilities, $700 million 8 7/8% senior notes or $350 million senior PIK toggle notes, according to an S-1 filing with the Securities and Exchange Commission.

The credit facilities consist of a $400 million revolving credit facility and a $1.13 billion term loan.

Currently, there is no firm expectation as to how Party City will allocate the reduction of the debt among these borrowing arrangements, but it intends to determine the allocation following the completion of this offering based on a number of factors, including amounts remaining at maturity, applicable interest rates, available pricing of repurchases, repayments or redemptions, outstanding balance and ability to reborrow.

The company said it may also use the remaining portion of the net proceeds for working capital and other general corporate purposes.

Party City is a Rockaway, N.J.-based designer, manufacturer and distributor of party goods, including paper and plastic tableware, metallic balloons, accessories, novelties, gifts and stationery.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.