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Party City Completes Chapter 11 Reorganization and Exit ABL

10.13.23

Simpson Thacher represented JPMorgan Chase Bank, N.A. (“JPM”), as administrative agent and lender under a pre-petition ABL facility in connection with the bankruptcy cases of Party City Holdco, Inc. and its affiliated debtors (“Party City”) and as administrative agent and lead arranger of Party City’s exit ABL facility (the “Exit Facility”). Party City’s chapter 11 restructuring went effective and the Exit Facility closed on October 12, 2023, after the Bankruptcy Court confirmed the Company’s plan of reorganization at the September 6, 2023 confirmation hearing.

JPM led and arranged the $562 million Exit Facility comprised of a $545 million revolver tranche and $17 million FILO term tranche.

Party City is a global leader in the celebrations industry, with its offerings being sold in more than 70 countries around the world. Party City is also the largest vertically integrated designer, manufacturer, distributor and retailer of party goods in North America.

The Simpson Thacher team included Elisha Graff, Zach Weiner and Jonathan Mitnick (Restructuring); Brandan Still, Ron Havas and Gavin Jaco (Credit); Michael Mann (Tax); Tim Gallagher (Real Estate); Courtney Welshimer (IP); Michael Isby (Environmental); Abram Ellis and Ryan Stalnaker (Regulatory); Jon Pall (Collateral); and Bill Russell (Litigation).