Party City Holdco Inc. announced the commencement of Exchange Offers for outstanding notes totaling $850 million, aiming to restructure debt. The offers include exchanging existing unsecured notes for shares of common stock, new secured second lien notes, and subscription rights for additional notes. The Exchange Offers are tied to consent solicitations for amendments to existing indentures. The company will also conduct a rights offering for eligible noteholders. Key deadlines include the Early Participation Time on July 10, 2020, and the final expiration on July 24, 2020.
Party City Holdco Inc. (PRTY) reported a challenging first quarter of 2020, with revenues falling 19.3% to $414.0 million largely due to COVID-19 store closures. Comparable sales declined 17.1%, while total gross profit margin decreased to 28.1%. The firm faced a net loss of $541.5 million, or $5.80 per share, compared to a gain last year. To stabilize finances, the company is restructuring debt by over 25% and has successfully reopened 85% of its stores. Overall, the company is navigating unprecedented disruptions while implementing safety measures for employees and customers.
Party City Holdco Inc. (PRTY) will release its first quarter 2020 financial results on June 12, 2020, before market open. A conference call is scheduled for 8:00 a.m. ET to discuss the results in detail. Investors and analysts can participate by dialing 866-270-1533 (or 412-317-0797 for international calls). The company is a leading party goods supplier in North America, with approximately 875 retail stores and a robust e-commerce platform. Its vertical integration and extensive product offerings set it apart in the industry.