SEC Contract Filing

Filing Date: 2020-05-29

Document Content:
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<TYPE>EX-10.1
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<FILENAME>d936049dex101.htm
<DESCRIPTION>EX-10.1
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.1 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>TRANSACTION SUPPORT AGREEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PARTY CITY HOLDCO INC. </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>MAY&nbsp;28, 2020 </B></P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This <B>TRANSACTION SUPPORT AGREEMENT</B> (together with the Transaction Term Sheet (as
defined below) and the other exhibits and schedules attached hereto, each of which is incorporated as if it is fully set forth herein in the first instance, and as may be amended, restated, supplemented, or otherwise modified from time to time in
accordance with the terms hereof, this &#147;<U>Agreement</U>&#148;), dated as of May&nbsp;28, 2020, is entered into by and among: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left">(a)</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Party City Holdco Inc., a Delaware corporation (&#147;<U>HoldCo</U>&#148;), Party City Corporation, a Delaware
corporation (&#147;<U>PC Corp.</U>&#148;), Party City Holdings Inc., a Delaware corporation (&#147;<U>Holdings</U>&#148;), and each of the guarantors of the Senior Notes (as defined below) and the Senior Credit Facilities (as defined below), each as
set forth on the signature pages to this Agreement (each a &#147;<U>Credit Party</U>&#148; and, collectively, together with HoldCo, PC Corp., and Holdings, the &#147;<U>Credit Parties</U>,&#148; the &#147;<U>Company</U>,&#148; or &#147;<U>Party
City</U>&#148;); and </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left">(b)</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">the undersigned holders or investment advisors, <FONT STYLE="white-space:nowrap">sub-advisors,</FONT> or
managers of discretionary accounts (together with their respective successors and permitted assigns, each, a &#147;<U>Consenting Noteholder,</U>&#148; and, collectively, the &#147;<U>Consenting Noteholders</U>&#148;)<SUP
STYLE="font-size:85%; vertical-align:top">1</SUP> that hold Senior Notes. </P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This Agreement collectively refers to the
Company and the Consenting Noteholders, and each other person that becomes a party to this Agreement in accordance with its terms as the &#147;<U>Parties</U>,&#148; and each, individually, as a &#147;<U>Party</U>.&#148; </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>WHEREAS </U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">A. The
Company and the Senior Notes Indenture Trustees (as defined below) are parties to the Senior Notes Indentures (as defined below), under which (i)&nbsp;the 2023 Notes (as defined below) were issued in the original aggregate principal amount of
$350,000,000 and (ii)&nbsp;the 2026 Notes (as defined below) were issued in the original aggregate principal amount of $500,000,000, such that the Senior Notes were issued in the original aggregate principal amount of $850,000,000. The current
principal amount outstanding of the 2023 Notes is $350,000,000 and the current principal amount outstanding of the 2026 Notes is $500,000,000, such that the current principal amount outstanding of the Senior Notes is $850,000,000. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">B. Prior to the date hereof, the Parties have negotiated the terms of a restructuring of the Senior Notes and the raising of additional debt
capital in good faith and at arm&#146;s length, each as set forth and as specified in this Agreement. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">C. The transaction will be
effectuated through (i)&nbsp;an exchange offer (the &#147;<U>Exchange Offer</U>&#148;) conducted by the Company for any and all of the Senior Notes for consideration described in the Transaction Term Sheet and a related consent solicitation (the
&#147;<U>Consent Solicitation</U>&#148;) to remove substantially all of the covenants in the Senior Notes Indentures (together, the &#147;<U>Exchange Offer and Consent Solicitation</U>&#148;), and (ii)&nbsp;the issuance of New Money First Lien
Issuer Notes (as defined below) by a direct, wholly-owned subsidiary of Holdings formed as a limited liability company (as issuer) and