Party City’s $750 Million of Senior Secured Notes Offering

Simpson Thacher represented the initial purchasers in the offering.

Party City Holdings Inc. (“Party City”), a wholly owned subsidiary of Party City Holdco Inc. (NYSE: PRTY), executed a private offering of an aggregate principal amount of $750 million of 8.75% Senior Secured First Lien Notes due 2026.

Party City intends to use the net proceeds from this offering, together with cash on hand, to repay all outstanding borrowings under its term loan facility, to pay related fees and expenses and for general corporate purposes, which may include debt repurchases.

The Initial Purchasers included J.P. Morgan Securities LLC, BofA Securities, Inc., Wells Fargo Securities, LLC, Credit Suisse Securities (USA) LLC, MUFG Securities Americas Inc., TD Securities (USA) LLC, BMO Capital Markets Corp., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC.

Party City is a popular one-stop shopping destination for party supplies, balloons and costumes. The company designs, manufactures, sources and distributes party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties, gifts and stationery throughout the world.

The Simpson Thacher team for the initial purchasers in the transaction included John C. Ericson (Picture), Ben Massey and Tommy Garber (Capital Markets); Jon Pall (Collateral); Jonathan Cantor and Suzy Yaster (Tax); Jennifer Neilsson (Executive Compensation and Employee Benefits); Timothy Gallagher (Real Estate); Genevieve Dorment, Bobbie Burrows and Kate Mirino (Intellectual Property); and Jennie Getsin (Blue Sky).

Involved fees earner: Bobbie Burrows – Simpson Thacher & Bartlett; Jonathan Cantor – Simpson Thacher & Bartlett; Genevieve Dorment – Simpson Thacher & Bartlett; John Ericson – Simpson Thacher & Bartlett; Timothy Gallagher – Simpson Thacher & Bartlett; Thomas Garber – Simpson Thacher & Bartlett; Jennie Getsin – Simpson Thacher & Bartlett; Ben Massey – Simpson Thacher & Bartlett; Kate Mirino – Simpson Thacher & Bartlett; Jennifer Neilsson – Simpson Thacher & Bartlett; Jonathan Pall – Simpson Thacher & Bartlett; Susan Yaster – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: Bank of America Securities; BMO Capital Markets; Credit Suisse Securities (USA) LLC; Deutsche Bank Securities; Goldman Sachs & Co.; J.P. Morgan Securities LLC; MUFG Securities Americas Inc. ; TD Securities; Wells Fargo Securities;

Author: Martina Bellini