Party City to Borrow Up to $200 Million for Possible Bankruptcy

Party City Holdco Inc.is looking to borrow $150 million to $200 million from bondholders to fund it during a possible bankruptcy, according to people with knowledge of the situation.

It’s negotiating with holders of its first-lien bonds, a group that includes Capital Group Cos. Inc. and Silver Point Capital, for debtor-in-possession financing. Those investors are being represented by Davis Polk & Wardwell and Lazard, the people said.

Representatives for Party City and Davis Polk didn’t respond to requests for comment. Lazard, Capital Group and Silver Point declined to comment.

Known for selling balloons and other festive supplies, Party ...