Party City Announces Execution of Transaction Support Agreement with Bondholders Holding over $440 Million of Its Bonds

Nachrichtenquelle: globenewswire
29.05.2020, 12:40  |  141   |   |   

ELMSFORD, N.Y., May 29, 2020 (GLOBE NEWSWIRE) -- Party City Holdco Inc. (the “Company” or “PCHI”; NYSE: PRTY) today announced a Transaction Support Agreement (the “TSA”) with holders (the “Consenting Noteholders”) of more than 52% of the aggregate principal amount of the 6.125% Senior Notes due 2023 (the “2023 Notes”) and the 6.625% Senior Notes due 2026 (the “2026 Notes” and, together with the 2023 Notes, the “Existing Notes”). The contemplated transactions (the “Transactions”) are expected to deleverage the Company’s balance sheet by approximately $450 million and the Company intends to raise $100.0 million in new capital to increase its financial strength and support PCHI’s global operations and ongoing transformation initiatives.

Brad Weston, CEO, stated, “The agreement announced today demonstrates the confidence of certain of our bondholders in our strategy and leadership team, and we appreciate their support for our long-term success. The transactions set out in this agreement deliver value to our stockholders and provide Party City a path to a significantly strengthened financial foundation as we continue to navigate the current macroeconomic challenges and implement our ongoing transformation initiatives.”

The TSA contemplates the following Transactions:

Exchange Offer

An exchange offer in respect of the Company’s 2023 Notes and 2026 Notes in which, assuming full participation, participating holders will receive a combination of:

  • shares of common stock of PCHI, representing 19.90% of such common stock outstanding on the settlement date;
     
  • $100.0 million aggregate principal amount of 10.00% senior secured notes due 2026 (the “Second Lien Issuer Exchange Notes”) to be issued by a newly formed limited liability company, a direct wholly owned subsidiary of Party City Holdings Inc. (“Holdings”), and Anagram International, Inc. (together, the “Issuer”). The Second Lien Issuer Exchange Notes will be secured by second-priority liens on all assets of the Issuer and its subsidiaries guaranteeing such notes and all of the Issuer’s capital stock, subject to certain agreed upon exceptions; and
     
  • $185.0 million aggregate principal amount of variable rate senior secured notes due 2025 (the “First Lien Party City Exchange Notes”) to be issued by Holdings and secured by first-priority liens on all assets of Holdings and its subsidiaries that currently secure the Company’s existing senior credit facilities. 

Consent Solicitation

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