By Abigail W. Adams
Portland, Me., Feb. 10 – Party City Holdco Inc. priced an upsized $750 million issue of five-year senior secured notes (expected ratings Caa1/CCC) at par to yield 8¾% on Tuesday, according to market sources.
J.P. Morgan Securities LLC was the lead for the Rule 144A and Regulation S offering.
The initial size of the offering was $725 million
The notes come with 2.5 years of call protection.
The issuing entity will be Party City Holdings Inc., a wholly owned subsidiary of Party City Holdco.
The Elmsford, N.Y.-based owner of retail party supplies stores plans to use the proceeds to pay off its term loan due in 2022 and for general corporate purposes, including debt repurchases.
| Issuer: | Party City Holdings Inc.
|
| Amount: | $750 million
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| Maturity: | Feb. 15, 2026
|
| Securities: | Senior secured notes
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| Bookrunner: | J.P. Morgan Securities LLC
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| Coupon: | 8¾%
|
| Price: | Par
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| Yield: | 8¾%
|
| Spread: | 828 bps
|
| Call protection: | Non-callable for 2.5 years
|
| Trade date: | Feb. 9
|
| Ratings: | Moody’s: Caa1
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Drive-by
|
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