JAKKS Pacific Announces Successful Completion of Debt Refinancing
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.
JAKKS Pacific (NASDAQ: JAKK) ha rifinanziato con successo il proprio debito con una nuova linea di credito revolving garantita di primo grado basata sul flusso di cassa da 70 milioni di dollari e durata cinque anni, concessa da BMO Bank NA. La nuova linea, con scadenza nel 2030, sostituisce la precedente linea di credito revolving da 67,5 milioni di dollari, che avrebbe dovuto scadere a giugno 2026.
Il tasso di interesse sarà SOFR più 150 punti base, variabile in base al rapporto trimestrale di leva finanziaria netta. La linea è garantita dagli asset aziendali e può essere utilizzata per capitale circolante, investimenti in conto capitale e scopi aziendali generali. È importante notare che non risultava alcun debito in essere sulla linea precedente.
JAKKS Pacific (NASDAQ: JAKK) ha refinanciado con éxito su deuda mediante una nueva línea de crédito revolvente garantizada de primer grado basada en flujo de caja por 70 millones de dólares a cinco años a través de BMO Bank NA. La nueva línea, con vencimiento en 2030, reemplaza la línea de crédito revolvente existente de 67,5 millones de dólares que estaba programada para vencer en junio de 2026.
La tasa de interés será SOFR más 150 puntos básicos, ajustable según la relación trimestral de apalancamiento neto. La línea está garantizada por los activos de la empresa y puede usarse para capital de trabajo, gastos de capital y propósitos corporativos generales. Cabe destacar que no había deuda pendiente en la línea anterior.
JAKKS Pacific (NASDAQ: JAKK)는 BMO Bank NA를 통해 새로운 5년 만기 7,000만 달러 규모의 현금 흐름 기반 1순위 담보 회전 신용 한도로 성공적으로 부채를 재융자했습니다. 이번 신용 한도는 2030년에 만기가 되며, 2026년 6월 만기 예정이었던 기존 6,750만 달러 회전 신용 한도를 대체합니다.
이자율은 SOFR에 150 베이시스 포인트를 더한 것으로, 분기별 순 레버리지 비율에 따라 조정됩니다. 이 신용 한도는 회사 자산으로 담보되며, 운전자본, 자본 지출 및 일반 기업 목적에 사용할 수 있습니다. 특히 기존 신용 한도에는 미상환 부채가 없었습니다.
JAKKS Pacific (NASDAQ : JAKK) a réussi à refinancer sa dette avec une nouvelle facilité de crédit renouvelable garantie de premier rang basée sur les flux de trésorerie, d'un montant de 70 millions de dollars sur cinq ans, accordée par BMO Bank NA. Cette nouvelle facilité, arrivant à échéance en 2030, remplace la facilité de crédit renouvelable existante de 67,5 millions de dollars, qui devait arriver à échéance en juin 2026.
Le taux d'intérêt sera le SOFR plus 150 points de base, ajustable en fonction du ratio d'endettement net trimestriel. La facilité est garantie par les actifs de l'entreprise et peut être utilisée pour le fonds de roulement, les dépenses d'investissement et les besoins généraux de l'entreprise. Il est à noter qu'aucune dette n'était en cours sur la facilité précédente.
JAKKS Pacific (NASDAQ: JAKK) hat seine Schulden erfolgreich mit einer neuen 70 Millionen US-Dollar umfassenden, fünfjährigen revolvierenden Kreditlinie auf Basis des Cashflows und mit erstem Pfandrecht über die BMO Bank NA refinanziert. Die neue Kreditlinie, die 2030 fällig wird, ersetzt die bestehende revolvierende Kreditlinie des Unternehmens über 67,5 Millionen US-Dollar, die im Juni 2026 fällig gewesen wäre.
Der Zinssatz beträgt SOFR plus 150 Basispunkte und ist abhängig vom vierteljährlichen Nettoverschuldungsgrad anpassbar. Die Kreditlinie ist durch Unternehmensvermögen besichert und kann für Betriebskapital, Investitionsausgaben und allgemeine Unternehmenszwecke verwendet werden. Bemerkenswert ist, dass auf der bestehenden Kreditlinie keine Schulden ausstanden.
- 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
- Interest rate could increase based on quarterly net leverage ratio
- Facility requires company assets as collateral
Insights
JAKKS Pacific secures favorable debt refinancing that extends maturity, improves terms and enhances financial flexibility.
JAKKS Pacific has successfully replaced its $67.5 million asset-based revolving credit facility with a new $70 million cash flow-based facility from BMO Bank. This refinancing represents a strategic financial enhancement for several reasons.
The shift from asset-based to cash flow-based lending is particularly significant. Asset-based facilities typically limit borrowing capacity to a percentage of eligible inventory and receivables, which can create liquidity constraints during seasonal business fluctuations. Cash flow facilities, by contrast, are structured around the company's EBITDA and provide more consistent borrowing capacity throughout business cycles.
The new facility offers three key improvements:
- Extended maturity from 2026 to 2030, providing longer-term stability
- Competitive pricing at SOFR plus 150 basis points
- Improved covenant structure that likely offers greater operational flexibility
The fact that JAKKS had no outstanding debt on its previous facility demonstrates strong current liquidity. That BMO was willing to provide enhanced terms signals confidence in the company's financial trajectory and underlying business fundamentals.
This refinancing strengthens JAKKS Pacific's financial foundation by ensuring access to capital through 2030 while potentially reducing borrowing constraints during seasonal inventory builds. For a toy company with inherently cyclical operations, this flexibility is particularly valuable for managing working capital efficiently and pursuing growth opportunities.
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
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