Party City to start roadshow Monday for $700 million eight-year notes

By Paul A. Harris

Portland, Ore., July 13 - Party City Holdings Inc. plans to start a roadshow on Monday for a $700 million offering of eight-year senior notes (Caa1/), according to syndicate sources.

An investor call is schedule at 12:30 p.m. ET on Monday.

The deal is set to price late in the July 16 week.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Barclays Capital Inc., Goldman Sachs & Co. and Morgan Stanley & Co. are the joint bookrunners.

The Rule 144A with registration rights notes become callable in three years at par plus 75% of the coupon.

The notes feature a three-year 40% equity clawback and a 101% poison put.

Party City's total debt financing package also includes a $1.45 billion credit facility.

Proceeds, along with equity investments, will be used to finance the acquisition of Party City by Thomas H. Lee Partners LP in a recapitalization transaction valued at $2.69 billion, and to repay existing debt.

Party City is a Rockaway, N.J.-based designer, manufacturer and distributor of party goods.

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