Dive Brief:
Party City plans to issue $725 million in new secured bonds due 2026 that it would use to pay off a term loan facility that matures next year, the company said in a press release.
The offering will be made privately to institutional buyers, according to the company. Along with paying down its term loan, the company would also use proceeds to repurchase other debt.
S&P Global Ratings upgraded Party City to CCC+ from CCC on the news of the bond offering, according to an emailed release. Analysts with the ratings agency said the transaction would address Party City s upcoming loan maturity but still leaves the company highly leveraged.