Why Party City's Shares Plunged 13.4% Today
Shares of retail stock Party City Holdco (NYSE: PRTY) plunged as much as 13.4% in trading Tuesday after the company announced a large debt offering. Shares regained some of those losses, but were still down 5.6% at 3:20 p.m. EDT today.
Management announced that Party City is proposing an offering of $725 million of senior secured notes due in 2026, which will be used in part to pay off a term loan that matures in 2022. The funds could also be used for general corporate purposes, which in today's environment means paying for losses on operations.
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Source Fool.com
