JAKKS Pacific Announces Successful Completion of Debt Refinancing
Rhea-AI Summary
JAKKS Pacific (NASDAQ: JAKK) has successfully refinanced its debt with a new $70 million five-year cash flow-based first lien secured revolving credit facility through BMO Bank NA. The new facility, maturing in 2030, replaces the company's existing $67.5 million revolving credit facility that was set to mature in June 2026.
The interest rate will be SOFR plus 150 basis points, adjustable based on quarterly net leverage ratio. The facility is secured by company assets and can be used for working capital, capital expenditures, and general corporate purposes. Notably, no debt was outstanding on the existing facility.
Positive
- New credit facility provides improved covenants and increased liquidity
- Extended maturity from 2026 to 2030, providing longer-term financial stability
- Larger facility size of $70M compared to previous $67.5M
- Flexibility to support growth opportunities in challenging economic conditions
Negative
- Interest rate could increase based on quarterly net leverage ratio
- Facility requires company assets as collateral
News Market Reaction
On the day this news was published, JAKK declined 1.36%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Bank of Montreal to Provide
SANTA MONICA, Calif., June 25, 2025 (GLOBE NEWSWIRE) -- JAKKS Pacific, Inc. (NASDAQ: JAKK) today announced that on June 24, 2025 it refinanced its existing asset-based revolving credit facility with a new cash flow based first lien secured revolving credit facility with BMO Bank NA (“BMO”) with a term ending in 2030.
The new first lien secured credit facility replaced the Company's existing
Management Commentary
“Our new credit agreement provides us with improved covenants and increased liquidity given how the seasonality of our business affects our net availability with asset-based lending. Today’s refinancing further positions JAKKS Pacific to continue its strong momentum as we execute on our strategy to increase margins and cash flow, grow EBITDA, and ultimately drive value to shareholders,” said John Kimble, Chief Financial Officer of the Company. “We appreciate the strong support of the bank’s team in putting this new agreement in place, and their confidence in our business and performance. This credit facility gives us the flexibility to take advantage of new opportunities to drive our growth and performance in a challenging global economic environment.”
More information on the debt refinancing is available within the Company’s Form 8-K filing available at https://jakks.com/investors.
About JAKKS Pacific, Inc.:
JAKKS Pacific, Inc. is a leading designer, manufacturer and marketer of toys and consumer products sold throughout the world, with its headquarters in Santa Monica, California. JAKKS Pacific’s popular proprietary brands include: AirTitans®, Disguise®, Fly Wheels®, JAKKS Wild Games®, Moose Mountain®, Maui®, Perfectly Cute®, ReDo® Skateboard Co., Sky Ball®, SportsZone™, Xtreme Power Dozer®, WeeeDo®, and Wild Manes™ as well as a wide range of entertainment-inspired products featuring premier licensed properties. Through our products and our charitable donations, JAKKS is helping to make a positive impact on the lives of children. Visit us at www.jakks.com and follow us on Instagram (@jakkspacific.toys), X (@jakkstoys) and Facebook (@jakkspacific.toys).
Forward Looking Statements
This press release may contain “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations, estimates and projections about JAKKS Pacific's business based partly on assumptions made by its management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such statements due to numerous factors, including, but not limited to, those described above, changes in demand for JAKKS Pacific's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, or that any future transactions will result in future growth or success of JAKKS. The “forward-looking statements” contained herein speak only as of the date on which they are made, and JAKKS undertakes no obligation to update any of them to reflect events or circumstances after the date of this release.
| CONTACT: |
| JAKKS Pacific Investor Relations |
| (424) 268-9567 Lucas Natalini investors@jakks.net |
FAQ
What are the key terms of JAKKS Pacific's (JAKK) new credit facility?
How does the new credit facility compare to JAKKS Pacific's previous facility?
What will JAKKS Pacific use the new credit facility for?
How much debt did JAKKS Pacific have outstanding on its previous facility?
What is the interest rate on JAKKS Pacific's new credit facility?
