By Chris Wack
JAKKS Pacific Inc. said it has successfully completed the refinancing of its existing term loan facility with a new term loan facility from Benefit Street Partners LLC and has entered into a new revolving asset-based credit facility with JP Morgan Chase .
The new senior term loan facility has a principal balance of $ 99 million maturing in June 2027. The term loan will bear interest at LIBOR plus 6.5% to 7%, subject to LIBOR floor of 1%.
JAKKS Pacific said the proceeds from the new term loan facility, along with available cash, were used to repay its existing $ 128.9 million 10.5% term loan facility maturing in 2023, plus unpaid interest and fees and expenses related to refinancing operations.
Under the BSP Term Loan, the Company can draw an additional $ 19 million to finance the redemption of one of its 2023 Senior Convertible Notes. The repayment of the term loan accelerates the maturity of the notes. convertible bonds until September 1, days from the repayment of the term loan. As of Thursday, the senior convertible bond balance outstanding was $ 18.9 million.
The company also successfully secured commitments from JP Morgan for a $ 67.5 million revolving asset-based credit facility maturing in June 2026. The new revolving credit facility replaced the existing 60 revolving credit facility. million dollars of the company due August 2022.
JAKKS Pacific stock rose 9% to $ 10 in pre-market trading.
Write to Chris Wack at [email protected]