August 6, 2020

Milbank Represents Ad Hoc Group of Unsecured Senior Noteholders of Party City in Out-of-Court Exchange


Milbank recently represented an ad hoc group of noteholders in an out-of-court exchange of Party City’s 6.125% senior notes due 2023 and 6.625% senior notes due 2026. Party City is an American publicly traded retail chain of party stores. In exchange for tendering the existing notes, the noteholders received new first lien debt in Party City, second lien debt in Anagram, Party City’s foil balloon manufacturer subsidiary, and equity in Party City. Certain of the noteholders and third parties also provided Party City with $100 million of new money funding in exchange for first lien debt in Anagram.

This matter is significant because the transaction provided Party City with a significant deleveraging and infusion of new capital to better situate its balance sheet during the global pandemic. With the help of the Milbank team, participating noteholders exchanged approximately $720 million in aggregate principal amount of the $850 million existing notes.

The Milbank team was led by partners Abhilash Raval (Financial Restructuring), Jerome McCluskey (Leveraged Finance), and Paul Denaro (Capital Markets) and included associates Edward Linden, Ryan Berger (Financial Restructuring), Sophia Karas, Chris Hahm, George Miller (Leveraged Finance), Timothy Kirby and Kelsey Craig (Capital Markets).