Party City Holdco Inc. (“the Company” or “Party City”) (NYSE: PRTY)
today announced the proposed offering by its wholly-owned subsidiary
Party City Holdings Inc. (“PCHI”) of $350 million aggregate principal
amount of senior notes due 2023 (the “Notes”). The Notes and the related
Notes guarantees will be offered in a private offering to qualified
institutional buyers pursuant to Rule 144A under the Securities Act of
1933, as amended (the “Securities Act”) and to non-U.S. persons in
accordance with Regulation S under the Securities Act. The precise
timing, size and terms of the offering are subject to market conditions
and other factors.
The net proceeds from the sale of the Notes, together with borrowings
under PCHI’s senior credit facilities, will be used to redeem all of the
$700 million outstanding aggregate principal amount of the 8.875% senior
notes due 2020 issued by PCHI and to pay accrued interest, premiums,
fees and expenses related thereto. The foregoing does not constitute a
notice of redemption for or an obligation to issue a notice of
redemption for PCHI’s Notes.
The Notes will be guaranteed each subsidiary that guarantees PCHI’s
senior credit facility.
The Notes and the related Notes guarantees have not been registered
under the Securities Act or any state securities laws. The Notes may not
be offered or sold in the United States or to, or for the benefit of,
U.S. persons absent registration under, or an applicable exemption from,
the registration requirements of the Securities Act and applicable state
securities laws.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the Notes or any other security and
shall not constitute an offer, solicitation or sale in any jurisdiction
in which, or to any persons to whom, such offering, solicitation or sale
would be unlawful. Any offers of the Notes will be made only by means of
a private offering circular.
About Party City
Party City Holdco Inc. is the leading party goods retailer in North
America and the largest vertically integrated supplier of decorated
party goods globally. The Company is a popular one-stop shopping
destination for party supplies, balloons, and costumes. In addition to
being a great retail brand, Party City Holdco Inc. is a global,
world-class organization that combines state-of-the-art manufacturing
and sourcing operations, and sophisticated wholesale operations with a
multi-channel retailing strategy that includes the Party City brick and
mortar and e-commerce retail operations. The Company is the leading
player in its category, vertically integrated and unique in its breadth
and depth. Party City Holdco Inc. 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 Company’s
retail operations include over 900 specialty retail party supply stores
in the United States and Canada, operating under the names Party City
and Halloween City, and e-commerce websites, principally through the
domain name PartyCity.com. The Company also franchises both individual
stores and franchise areas throughout the United States and Puerto Rico,
principally under the name Party City.
Forward-Looking Statements
This press release contains forward-looking statements made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements give current expectations or
forecasts of future events or our future financial or operating
performance, and include Party City’s expectations regarding revenues,
brand comparable sales, Adjusted EBITDA, Adjusted net income/loss,
diluted earnings per share, average common shares outstanding and the
effective tax rate. The forward-looking statements contained in this
press release are based on management’s good-faith belief and reasonable
judgment based on current information, and these statements are
qualified by important risks and uncertainties, many of which are beyond
our control, that could cause our actual results to differ materially
from those forecasted or indicated by such forward-looking statements.
These risks and uncertainties include: our ability to compete
effectively in a competitive industry; fluctuations in commodity prices;
adequacy of helium supplies; our ability to appropriately respond to
changing merchandise trends and consumer preferences; successful
implementation of our store growth strategy; decreases in our Halloween
sales; disruption to the transportation system or increases in
transportation costs; product recalls or product liability; economic
slowdown affecting consumer spending and general economic conditions;
loss or actions of third party vendors and loss of the right to use
licensed material; disruptions at our manufacturing facilities; and the
additional factors set forth in “Risk Factors” in Party City’s
prospectus dated April 15, 2015 and in subsequent reports filed with or
furnished to the Securities and Exchange Commission. Except as may be
required by any applicable laws, Party City assumes no obligation to
publicly update such forward-looking statements, which are made as of
the date hereof or the earlier date specified herein, whether as a
result of new information, future developments or otherwise.
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