Party City Holdings Inc. Announces Pricing of $350 Million Offering of Senior PIK Toggle Notes

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Jul 29, 2013, 07:40 ET

ELMSFORD, N.Y., July 29, 2013 /PRNewswire/ -- Party City Holdings Inc. (the "Company") announced today that its indirect parent company, PC Nextco Holdings, LLC ("PC Nextco Holdings"), along with a co-issuer, PC Nextco Finance, Inc. (collectively, "the issuers"), has priced an offering of $350 million aggregate principal amount of 8.750% / 9.500% senior PIK toggle notes due 2019 (the "Notes"). The Notes were offered and will be sold in a private placement to qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act. The offering is expected to close on August 1, 2013, subject to customary closing conditions.

Interest will be payable semi-annually at a rate of 8.750% per year with respect to cash interest and 9.500% per year with respect to PIK interest. The Notes will mature on August 15, 2019.

PC Nextco Holdings intends to use the net proceeds from this offering to distribute cash to its parent company to fund a cash dividend, distribution or other payment to its shareholders, and to pay related fees and expenses.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any sale of the Notes in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

The Notes to be offered have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933.

About Party City

Party City designs, manufactures, contracts for manufacture and distributes party goods, including paper and plastic tableware, metallic and latex balloons, accessories, novelties, costumes, other garments, gifts and stationery throughout the world. In addition, Party City operates specialty retail party supply stores in the United States and Canada, principally under the names Party City and Halloween City, and it operates e-commerce websites, principally under the domain name partycity.com. Party City also franchises both individual stores and franchise areas throughout the United States and Puerto Rico.

This news release may contain forward-looking statements, including those relating to completion of the offering by the issuers and the proposed use of proceeds. Important factors that could cause actual results to differ materially from our expectations include, without limitation: the satisfaction of customary closing conditions relating to the offering; capital market risks; and the impact of general economic or industry conditions. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Other risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission. We intend these forward-looking statements to speak only as of the time of this release and do not undertake to update or revise them as more information becomes available.

SOURCE Party City Holdings Inc.