Party City (PRTY) Sees IPO Price of $15 - $17/Share

Thomas H. Lee Partners-owned Party City Holdco Inc. (NYSE: PRTY) filed an amended registration with the U.S. SEC for an IPO of its Common Stock. The company plans to offer 21,875,000 shares and sees an offering price of $15 to $17 per share. The company plans to list on the NYSE under the ticker, PRTY.

Party City is valued at $1.97 billion at the high-end of the expected pricing range.

Key financial performance points: Grew revenue from $1,599.1 million for the year ended December 31, 2010 to $2,271.3 million for the year ended December 31, 2014 representing a compounded annual growth rate of 9.2 percent; and increased adjusted EBITDA from $230.6 million, implying an adjusted EBITDA margin of 14.4 percent, for the year ended December 31, 2010 to $362.1 million for the year ended December 31, 2014, for an implied adjusted EBITDA margin of 15.9 percent. Net income increased from $49 million for the year ended December 31, 2010 to $56 million for the year ended December 31, 2014. Net income during 2014 was impacted by higher interest expense, resulting from debt incurred in conjunction with the Transactions and the issuance of the $350 million senior PIK toggle notes (“the senior PIK toggle notes”), as well as the impact of non-cash purchase accounting adjustments resulting from the Transactions and the impact of non-recurring charges related to refinancings.

Party City says it is the leading party goods retailer by revenue in North America and, we believe, the largest vertically integrated supplier of decorated party goods globally by revenue, with multiple levers to drive future growth across channels, products and geographies.

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