Amscan details $540 million credit facility commitment to acquire Party City

By E. Janene Geiss

Philadelphia, Oct. 7 - Amscan Holdings Inc. has received a commitment for a new $540 million credit facility to be used in connection with its buyout of Party City Corp., according to an 8-K form filed Friday with the Securities and Exchange Commission.

The credit facility includes up to $400 million of term loans under a first lien facility with a seven-year maturity, up to $75 million of revolving loan commitments under a first lien facility with a six-year maturity and up to $65 million of loans under a second lien facility with a maturity of eight years, according to the SEC filing.

Company officials said proceeds of the term loan and up to $5 million of the revolving loan will be used to finance the merger, repay or refinance existing debt and pay merger fees and expenses.

The rest of the revolving loans would be available for ongoing working capital and general corporate purposes, company officials said in the filing.

Equity contributions of at least $100 million from Berkshire Partners LLC and Weston Presidio, the owners of Amscan, will be used to replace some of the existing Amscan financing and to help fund the acquisition, the filing said.

Goldman Sachs and Bank of America are the lead banks on the deal, which is expected to close at the end of this year or early next year. Goldman Sachs will act as the syndication agent for the facilities, the filing said, be administrative agent for the second lien facility. The administrative agent for the first lien facility is to be determined. Bank of America will serve as the documentation agent for the facilities, according to the filing.

Party City is a Rockaway, N.J., party goods chain. Amscan Holdings is an Elmsford, N.Y. designer, manufacturer and distributor of decorative party goods.

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