Party City Holdings to launch $1.45 billion credit facility on July 10

By Sara Rosenberg

New York, July 2 - Party City Holdings Inc. has set a bank meeting for July 10 to launch a proposed $1.45 billion credit facility, according to market sources.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs & Co., Morgan Stanley Senior Funding Inc. and Barclays Capital Inc. are the lead banks on the deal.

The facility consists of a $400 million ABL revolver and a $1.05 billion term loan, sources said.

Proceeds will be used to help fund the buyout of the company by Thomas H. Lee Partners LP in a recapitalization transaction valued at $2.69 billion.

Advent International Corp., Berkshire Partners LLC, Weston Presidio and company management, which currently own Party City, will continue to hold significant minority stakes following the recapitalization.

Other funds for the transaction will come $700 million of notes, sources added.

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.

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