Published on 8/3/2020 in the Prospect News Distressed Debt Daily and Prospect News High Yield Daily.
New Issue: Party City units issue $351.36 million of floaters, PIK/cash notes
By Sarah Lizee
Olympia, Wash., Aug. 3 – Party City Holdco Inc. issued $156,669,177 of senior secured first-lien floating rate notes due July 15, 2025 through Party City Holdings Inc., $84,686,977 of 10% PIK/cash senior secured second-lien notes due Aug. 15, 2026 through Anagram Holdings, LLC, $110 million of 15% PIK/cash senior secured first-lien notes due Aug. 15, 2025 through Anagram Holdings and Anagram International, Inc., according to an 8-K filing with the Securities and Exchange Commission.
The Party City first-lien notes bear interest at six-month Libor plus 500 basis points with a floor of 75 bps. Upon the retirement of Libor on Dec. 31, 2021, interest will instead accrue at a rate based on SOFR.
Party City Holdings may redeem the first-lien notes in whole or in part at any time at par plus accrued interest, if any, to but not including the redemption date.
On or after Aug. 15, 2022, 2023 and 2024, the Anagram issuers may redeem the first-lien Anagram notes, in whole or in part, at any time at 103, 102 and 101, respectively, except that the redemption price will be par at any time during the period beginning May 15, 2025, in each case plus accrued interest, if any, to but not including the redemption date.
For the second-lien Anagram notes, on or after Aug. 15, 2022, 2023, 2024 and 2025, the Anagram issuers may redeem the second-lien anagram notes, in whole or in part, at 103, 102, 101 and par, respectively, in each case plus accrued interest, if any, to but not including the redemption date.
The notes from each series are putable at 101 following a change of control.
The issues are part of Party City’s previously announced refinancing transactions, including, among other things, the exchange of $327,076,000 of 6 1/8% senior notes due 2023 and $392,746,000 of 6 5/8% senior notes due 2026 issued by Party City Holdings, in each case tendered in the company’s exchange offers for the new notes, shares of common stock of Party City Holdco and an additional $5 million of first-lien Party City Notes in connection with a rights offering and a private placement.
Party City is an Elmsford, N.Y.-based supplier of decorated party goods.
First-lien Party City notes
| Issuer: | Party City Holdings Inc.
|
| Issue: | Senior secured first-lien floating rate notes
|
| Amount: | $156,669,177
|
| Maturity: | July 15, 2025
|
| Coupon: | Six-month Libor plus 500 bps with a floor of 75 bps
|
| Call: | In whole or in part at any time at par plus accrued interest, if any, to but not including the redemption date
|
| Put: | At 101 following a change of control
|
| Settlement date: | July 30
|
|
|
| Second-lien Anagram notes
|
| Issuer: | Anagram Holdings, LLC
|
| Issue: | PIK/cash senior secured second-lien notes
|
| Amount: | $84,686,977
|
| Maturity: | Aug. 15, 2026
|
| Coupon: | 5% payable at the issuers’ option entirely in cash or entirely by increasing the principal amount of the outstanding notes or issuing additional notes; 5% payable by increasing the principal amount of the outstanding notes or issuing additional notes; on Aug. 15, 2025, required to be paid by increasing the principal amount or additional notes
|
| Call: | In whole or in part, at 103, 102, 101 and par, respectively, in each case plus accrued interest, if any, to but not including the redemption date
|
| Put: | At 101 following a change of control
|
| Settlement date: | July 30
|
|
|
| First-lien Anagram notes
|
| Issuer: | Anagram Holdings, LLC and Anagram International, Inc.
|
| Issue: | PIK/cash senior first second-lien notes
|
| Amount: | $110 million
|
| Maturity: | Aug. 15, 2025
|
| Coupon: | 10% payable in cash; 5% payable by increasing the principal amount of the outstanding notes or issuing additional notes
|
| Call: | In whole or in part, at any time at 103, 102 and 101, respectively, except that the redemption price will be par at any time during the period beginning May 15, 2025, in each case plus accrued interest, if any, to but not including the redemption date
|
| Put: | At 101 following a change of control
|
| Settlement date: | July 30
|
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