The Exchange Offers, the Consent Solicitations and the Rights Offering expired at 11:59 p.m., New York City time, on July 24, 2020 (such time and date, the “Expiration Time”). As of the Expiration Time, based on information provided by Epiq Corporate Restructuring, LLC, the information and exchange agent for the Exchange Offers and Consent Solicitations and the subscription agent for the Rights Offering, (i) approximately $719.8 million in aggregate principal amount of the Existing Notes, representing approximately 93.5% of the aggregate outstanding principal amount of the 2023 Notes and approximately 78.6% of the aggregate outstanding principal amount of 2026 Notes, had been validly tendered and accepted for exchange by the Company in connection with the Exchange Offers, (ii) sufficient Consents to effectuate the Proposed Amendments to each of the Existing Notes Indentures had been delivered and (iii) approximately $19.9 million in aggregate principal amount of the First Lien Anagram Notes had been subscribed for and accepted in the Rights Offering.
In addition, the Company today announced that it has waived the minimum participation condition applicable to the Exchange Offers as further described in the Offering Memorandum.
On the terms and subject to the conditions set forth in the Offering Memorandum, concurrently with the settlement of the Exchange Offers and the Rights Offering, the Company expects to issue approximately $90.1 million (including fees) in aggregate principal amount of additional First Lien Anagram Notes to certain backstop commitment parties and private placement commitment parties. As a result, on the Settlement Date, the Company expects to (a) issue (i) $110.0 million aggregate principal amount of First Lien Anagram Notes, (ii) $84.7 million aggregate principal amount of Second Lien Anagram Notes, (iii) approximately $161.7 million aggregate principal amount of First Lien Party City Notes and (iv) approximately 15.9 million shares of Common Stock, and (b) enter into supplemental indentures to the Existing Notes Indentures effectuating the Proposed Amendments.
This communication is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security and does not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Exchange Offers, the Rights Offering and related transactions are being made in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933 (the “Securities Act”), have not been registered with the Securities and Exchange Commission (the “Commission”) and rely on exemptions under state securities laws.
The Exchange Offers, the Rights Offering and related transactions have not yet settled and may not occur on the terms described in this press release or at all.
About Party City
Party City Holdco Inc. is the leading party goods company by revenue in North America and, we believe, the largest vertically integrated supplier of decorated party goods globally by revenue. The Company is a popular one-stop shopping destination for party supplies, balloons, and costumes. In addition to being a great retail brand, the Company is a global, world-class organization that combines state-of-the-art manufacturing and sourcing operations, and sophisticated wholesale operations complemented by a multi-channel retailing strategy and e-commerce retail operations. The Company is the leading player in its category, vertically integrated and unique in its breadth and depth. The Company designs, manufactures, sources and
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