#United States #Senior Notes #Irving, Texas #PrimeSource Brands #Park River Holdings

Park River Holdings Announces New Exchange Offers

On September 18, 2025, Park River Holdings, Inc., the parent company of PrimeSource Brands, disclosed the initiation of exchange offers aimed at its outstanding 5.625% and 6.750% Senior Notes due in 2029. This strategic move is part of their broader effort to optimize their financial structure and improve liquidity. The company is inviting eligible holders of these existing notes to exchange them for newly issued 8.75% Second Lien Secured Notes due in 2030, along with cash considerations. These exchange notes will be backed by guarantees from the company’s wholly-owned domestic subsidiaries.

The Details of the Offers

Key Features of the Exchange Offers

Under the new terms, holders who participate will be able to exchange their existing notes for a combination of new secured notes and cash, with interest payments on the newly issued notes set to be made semi-annually. This exchange program is structured as two separate offers, allowing flexibility for participants and may be subject to amendments or extensions by the company. It operates under stringent conditions, including participation thresholds to ensure the financial viability of the restructuring effort.

Solicitation of Consent from Note Holders

In conjunction with the exchange offers, Park River Holdings is also organizing consent solicitations from eligible note holders to approve essential amendments to existing indentures. These amendments aim to eliminate restrictive covenants and modify provisions surrounding mergers and consolidations, thus allowing for more flexible operational management in the future.

Financing Measures

To support this initiative, the company anticipates launching new first lien financing transactions, which will include an amended credit facility intended to fulfill several financial obligations, including the repayment of existing debts and facilitating the cash elements of the exchange offer. The execution of these transactions is vital for satisfying the conditions outlined for the exchange offers to proceed successfully.

Conditions and Expiration

The exchange offers are contingent upon the fulfillment of specific conditions, including the company achieving the required participation levels from note holders. The deadline for submissions is set for October 17, 2025, unless extended, with early participation offering additional cash benefits to the holders. This structure underscores the company’s commitment to enhancing its balance sheet and maintaining liquidity in a challenging financial landscape.

Conclusion

Park River Holdings' latest actions reflect a proactive approach to debt management, ultimately seeking to position itself more favorably in the market. The success of these offers will depend significantly on the response from the note holders and market conditions, but the foundations laid out demonstrate a clear path forward for the company’s financial strategy and operational resilience.

For further inquiries, note holders and interested parties can consult the official exchange agent for detailed terms and conditions.