The US Bankruptcy Court gave an order to Party City Holdco Inc., to obtain DIP financing on final basis on March 3, 2024. As per the order, the debtor has been authorized to obtain a new money term loans in an aggregate principal amount of $150 million on final basis with Ankura Trust Company, LLC acting as the administrative agent. The DIP loan would either carry an interest rate of ABR: ABR (with a floor of 2.00%) plus 9.00% SOFR: SOFR (with a floor of 1.00% and a credit spread adjustment of 0.10%) plus 10.00% along with an additional 2% p.a. interest in the event of default.

As per the terms of the DIP agreement, the loan carries a commitment fee of 8% p.a. The DIP facility would mature either on June 19, 2023, or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, whichever is earlier. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $0.05 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral.