JAKKS Pacific Refinances Term Loan and New Revolving Credit Line



Chris Wack

JAKKS Pacific Inc. said it successfully refinanced its existing fixed-term facility with a new fixed-term facility from Benefit Street Partners LLC and entered into a new asset-based revolving facility with JP Morgan Chase.

The new first-term collateralized loan has a principal balance of $ 99 million due in June 2027. The interest rate on the term loan will be LIBOR plus 6.5-7% with a minimum LIBOR rate of 1%.

JAKKS Pacific said that proceeds from the new line of credit, along with cash, were used to repay the existing 10.5% credit facility in the amount of USD 128.9 million, due in 2023, as well as unpaid interest, fees and expenses. related to refinancing operations.

With a BSP term loan, the company may raise an additional $ 19 million to fund the redemption of any of its 2023 convertible senior bonds. The repayment of the term loan accelerates the maturity of the convertible senior notes to September 1, i.e. days from the date of payment of the term loan. As of Thursday, the outstanding convertible senior notes stood at $ 18.9 million.

The company has also successfully secured a commitment from JP Morgan for an asset-based revolving facility of USD 67.5 million maturing in June 2026. The new revolving credit facility replaced the company’s existing revolving credit facility of USD 60 million due in August 2022.

JAKKS Pacific shares rose 9% to $ 10 premarket.

Email Chris Wack at chris.wack@wsj.com


Source link